RealX, a platform for fractional ownership of properties held as digital asset tokens, announced the completion of its first commercial transaction that recorded property co-ownership on blockchain and token holders being issued property tokens after the due registration process of a property. Property investing has always been a high value, high involvement investment with a lot of friction and inefficiencies. While all other assets are available digitally and come with the ability to invest in smaller more affordable amounts today, property is one asset that is yet to see this transformation.
Manish Kumar, Cofounder and CEO, RealX, said, “Lack of access to good opportunities can be attributed to be a big contributor in the wealth gap that we see increasing every year. The only solution to this is to bring legitimate products that so far were inaccessible to most of us and make it accessible to everyone digitally and in affordable amounts.”
However, there remained a legal gap between the ownership of the real-world asset and the digital token holders. There was a lack of legal linkage between the two and this has been the biggest challenge in the product evolution preventing it from reaching its full potential. In case of immovable properties or real estate, the laws and processes involved make this challenge more formidable.
RealX has been working on solving this challenge and so in a way the advantages of blockchain can be leveraged. This is a significant global milestone in the Real World Digital Assets space. Real World Digital Assets (RWA) are considered the most acceptable frontier for development of blockchain as it converges the traditional assets and traditional finance with the advantages of blockchain.
Dushayant, an investor who invested in the first transaction, said, “The investment process is completely paperless and quick at the same time the due diligence by RealX saves a lot of time and effort for the investors. Wishing RealX and their investors well in their future endeavours.”
RealX had already introduced Registered Co-Ownership (RCO) as its first product wherein it offered a registered property deed with single registrant (as Principal Custodian) on behalf of all co-owners investing in the property. The current product is an extension of the earlier one but with the advantages of blockchain, smaller investment sizes and easy transferability and greater customer control. It now offers blockchain based Property Tokens (NFTs) that will provide the token holders direct and proportional beneficial ownership of the property. The Property Tokens will mean a proportionate direct ‘Right to Registered Co-Ownership’ (RRO).
Going forward, RealX will open for public access in a few weeks’ time. “However, starting today, we are open to engage with developers and other property sellers to onboard their properties. We will also be onboarding channel partners and new asset managers for some time. Meanwhile, customers can join the waitlist and may be given early access in batches before we open to the public,” the company said.