Fundament Group, based in Germany’s Berlin, has received the approval from BaFin to issue the nation’s first tokenized bond which is backed by the German real estate. BaFin is the Federal Financial Supervisory Authority of Germany. This real estate bond is based on the blockchain of Ethereum and is worth 250 million euros (approximately 280 million dollars).
Fundament Real Estate Token gets approval by German Financial Supervisory Authority!
We received green light for the sale of our #securitytoken.
The token is backed by a real estate portfolio worth EUR 250 million.
Stay tuned for exclusive news on our upcoming public sale. pic.twitter.com/ipBw3abp1X
— Fundament Group (@GroupFundament) July 23, 2019
Announced this Tuesday 23rd July, this security token will be up for investment by any retail investor, regardless of their geographical location. Moreover, there won’t be any requirement for a minimum investment to be fulfilled and no limitations on the number of investors. What that means is, an investor in Indonesia, for instance, can purchase Ethereum tokens worth even a hundred euros and make an indirect investment into the German realty.
A representative of BaFin, in an official statement to CoinDesk, confirmed their approval of Fundament’s prospectus. On behalf of the Group, the spokesperson also said that it was indeed the very first time that they had approved a bond which is backed by real estate and based on blockchain. However, it is not their first in terms of blockchain technology.
The co-founder of Fundament Group, Florian Glatz, shared his views on this new development saying they are thrilled to enter the Real Estate Security Token’s sales process, given they are the first firm to have received such an approval. Glatz also said that they’re already busy preparing for tokenization of other valued assets.
The official press release by Fundament Group revealed that the token would be running on the public blockchain of Ethereum, utilizing the standard of ERC-20. The company will begin marketing the token from next month.
Apparently, the Group will let the investors purchase tokens through Euros, USD, Ether, as well as Bitcoin. In fact, investors will also be able to make payments in fiat, though it will be a hardware device on which the tokens would be delivered. As far as liquidating these investments is concerned, customers can do so hassle-freely in the delegated secondary markets anytime they please.
The press release also reveals that the company eyes on properties based in Germany’s prime urban centers such as Berlin, Rostock, Hamburg, Fulda, and Jena. Furthermore, the identity verification of potential buyers will be done by IDnow in compliance with the anti-money laundering and KYC regulations.
Another co-founder of Fundament Group, Robin Matzke, disclosed that rather than relying on any investment bank for distribution of the security tokens, their company would do so themselves. That way, they would be able to increase returns for the investors and lower the cost of issuance.