Revolutionizing Finance: How EstateX Uses Tokenization for Global Real Estate and Liquidity

I think regulations is the most foundational and the most key aspect I think there is in you know tokenization and trying to bring digital securities to a wide audience and a wide range of investors. So, you know, you see a lot of crypto projects and tokenization platforms or investment platforms that try to launch a token first and then after they think about the legality. They don't actually think about what is needed for the actual foundations of delivering a successful RWA project. And because you're operating in such a heavy regulated field and doing something that's completely different from the traditional sense, right? Because the traditional sense, you know, there there are investment platforms out there.

You can crowd fund. Obviously, institutions have been in in securities for years, obviously. But bringing tokenization, especially years ago when we started, four or five years ago, it was definitely a challenge where we had to navigate through like a sort of a minefield of regulations where we now have a complete end-to-end regulated ecosystem within Europe, within the EU, where we have integrated things like brokers licenses, custody licenses, KYC AML, registry licenses, where we have basically all the foundational key aspects covered with either ourselves or with regulated partners where we can prove ownership into a smart contract, where we're able to broker the tokenized digital securities to retail investors all over the EU, where we're able to, you know, with our regulated custodian, they can actually safe keep all of the security tokens in a regulated environment. So, basically from the moment you onboard your funds on the platform to the distribution mechanic to the safe keeping of your tokens, we have that full end-to-end regulated ecosystem which gives confidence um, also trust to the investors knowing that even, you know, in in a in a field that is developing and that is innovating a traditional system as we've never seen before with tokenization in in finance, they still have that regulatory security. So, we've obviously done years, uh, we founded this over 5 years ago, and that whole build up has been a process, um, to get the right legal foundations in place, uh, that we now completely have that and can offer that to a wide range of investors.

I think that's a really good question because here comes, um, what I think makes us very, very unique also compared to other tokenization {slash} RWA projects. As you see with a lot of these investment platforms, you know, you can put your money in, but how do you get your money out, right? And especially within tokenization, that seems to be, uh, extremely difficult. So, how do people bridge that? Well, you see a lot of platforms, you know, trying to have a sort of the crowdfunding solution where, you know, you you crowd fund an asset and then you put a sell date on it a couple of years later.

But this does not really make a difference, right? Because if you want to utilize the full potential of tokenization and blockchain technology in traditional assets, you have to make sure that you actually, you know, make use of the benefits that blockchain brings, which is obviously 24/7 tradeability, um, liquidity. I think those are two of the main assets. backs and to come back on your question, if you just crowd fund it and you put an a sell date on it, you don't really need the blockchain because there's no really additional benefit to doing it except for the transparency maybe. Um, so, how do we cover that?

We have integrated, uh, depth and liquidity providers where we basically offer within our ecosystem a wide range of, uh, solutions to be able to make use of 24/7 tradeability and to make use, uh, of the liquidity. You know, as opposed to traditional stocks where you can only trade during weekdays, with tokenized securities and with our securities on the platform, we have integrated a secondary marketplace. And on the secondary marketplace, we have a market maker to make sure that buy and sell orders are always matched. And that basically means that with the liquidity provided and the liquidity that's put against these assets, investors are now able to invest within a couple of minutes, but theoretically also make an exit within a couple of minutes. So, the our platform basically brings a solution where you can buy real estate today and theoretically sell it tomorrow if it's a, you know, proper or successful investment strategy is to be doubted, of course, but you know, you have the flexibility there.

And what we also have with EstateX Pay is that we are actually able to make investors pay with the real estate investment. So, we make real estate assets so liquid that you can now actually do your groceries with it. And the same with our instant loan system where you're able to get debt against your real estate asset so you can take loans. And that can be used for things like leveraging purposes, you know, to build out their portfolio with only their initial investment. So, basically we offer liquidity and 24/7 tradability on multiple ways.

With loans for debt, via the payment card where you can actually pay with your real estate investments. So, instead of losing money on the bank due to inflation, you're now able to earn on your assets, earn passive income, enjoy the capital appreciation, earn rental income, but at the same time making those so liquid that you can now do your groceries with it. It's something that has never been done before and it basically changes the whole way how people can manage their finances. And the third way is obviously the 24/7 tradability on the secondary marketplace where you're able to cash out at any time. And I think if you have a platform like that, which is not around at the moment, it doesn't exist except for EstateX which is bringing that to the world, you basically make full use of blockchain technology in traditional securities now digitized and it makes sure that a traditional financial market which has been the same for years actually is now ready for change and it puts all the power back in the hands of the investors and gives them all the tools to build financial freedom.

I think for the transparency you obviously have the blockchain so everything is traceable, right? I think that's that's one of the beautiful things that the blockchain brings. It's like a hedge against fraud because everything is traceable. Besides that we are fully regulated so that gives investors the confidence that anything is approved by regulators beforehand, right? Any offering that we do is approved by regulators beforehand and it also gives investors the confidence that even via you know simplified paperwork you still have the paperwork like prospectus, filing at the financial supervisor which has been approved, contracts that need to be signed which basically gives them the confidence and the security to be able to make a fully transparent choice.

Then on the platform itself for the investor to make a decision we make sure that we provide them with all the information so we give them you know the historic data of the property, future growth plans, what is you know the municipality for example going to do in the area around the property all the paperwork around it as many photos as we can even virtual tours and stuff like that, the numbers fully explained. So we give them all the information basically to make a proper decision. Then on the geographical risk because we are fully regulated we're able to offer cross borders so we have a legal framework in the US but also in the EU. We're moving towards the Middle East and that base basically makes it that we are able to get assets from all around the world except for sanctioned countries of course but aside the sanctioned countries we're able to get assets all around the world and still offer that through the legal framework to the select regulated amount of investors that we can reach. So, for example, we can take a penthouse from Tokyo and offer that to European investors, or we can get a Cape Verde holiday resort unit, for example, we can give that and offer that to US investors.

So, we're basically able to let them invest across borders geographically, and that all in a fully regulated and compliant manner. Then, around the third question of yours, the dismanagement of properties, so I'll give you a practical example of what we've done. So, we are the first property that we offered, which was a huge success and sold out in 5 minutes, that property was a holiday resort unit in Cape Verde that we're able to get below the actual valuation, 10% below, and with 3 years rental income paid up front and locked into a smart contract. That property was managed by TUI. TUI is, I don't know if you know it, but it's one of the biggest holiday resort brands from Europe.

So, they have their own flight airline, and they take care of the full management of the property. So, that makes sure that we, you know, it it solidifies our position that we work with the most trustworthy companies that do management of the properties. So, we can make sure that our investors get worth for their money, the investment is to just make sure that everything goes in a smooth manner. So, TUI is obviously a practical example of what we've done, but the general gist is that we work with the most trustworthy companies that have a proper proper track record, big clients that actually make use of their service. So, we again can offer our investors the confidence to make the right decision.

So, with our complete all-in-one ecosystem that we have, not only, you know, the investment platform that we have, but also things like the white label technology, uh you know, asset and investment management platforms, our legal framework to be able to offer that to a wide range of investors. A lot of um governments are interested in what we do. So, obviously we're working with multiple billion-dollar institutions providing this software, this tokenization software, to them to make sure they have a head start when they want to make the transition into Web3 and into tokenization. And one deal that we've recently closed is with the government of Liberland. Liberland is uh governed by Justin Sun, um the founder of of Tron.

Obviously, he's the prime minister of Liberland. And they're creating their um a sort of a new Monaco, but then in Eastern Europe. Um that's their goal, that's what they're working towards, and they're very keen in Web3, you know, with Justin Sun, obviously, as prime minister as the prime example. And as Stobox officially uh closed the deal to become the official tokenization partner of Liberland. Um and where we're going to tokenize all kinds of things, the resources that they want to build there to attract high-net-worth individuals, uh stocks, bonds, uh uh fundraising for schools, everything in their economy, which they're now building to become the new Monaco of Europe with a very favorable tax uh regime and attracting a lot of Web3 people there.

Uh so, that is something that we have now officially closed, and it solidifies the position of us of, you know, the attraction of a Stobox towards governments. And we're very, very happy to work with alongside people like Justin Sun and the president uh uh Jed of Liberland to make sure that we can actually boost their economy through tokenization and Web3.