Liechtenstein-based crowdlitoken has received the FMA’s authorization for its token sale. The firm has already started the Private Sale and is going to launch a token sale in ten EEA member countries.
Liechtenstein’s Financial Market Authority (FMA) has authorized the sale of a blockchain-based real estate investment. Crowdlitoken wants to raise CHF 100 million via an STO to build up a blockchain-based real estate portfolio. The goal is to provide institutional and retail investors access to tokenized real estate assets in Europe.
EEA-wide Pre-Public Sale to start in May
Crowdlitoken is a Liechtenstein-based startup. Like many other blockchain firms, the company has chosen Liechtenstein primarily for regulatory reasons.
CEO Domenic Kurt said to Finews, “Liechtenstein’s blockchain regulations are very well-developed.” He also pointed out that Liechtenstein’s EEA membership is extremely valuable for firms trying to build a global product.
With the sales authorization of the FMA, investors in the entire European Economic Area can participate in the STO. Crowdlitoken will launch its token sale in Liechtenstein, Germany, Austria, Italy, France, Belgium, Luxembourg, the Netherlands, Ireland, and Great Britain. Reto Fierz, Chairman at Crowdlitoken, says, „The FMA authorization is a key milestone for us and will move our project forward.”
The company has also applied for authorization by the Swiss regulator FINMA, but the prospectus has not yet been approved. However, Switzerland’s leading stock exchange SIX has issued an ISIN Number.
According to a press release, crowdlitoken has already onboarded several qualified investors. With the authorization of the FMA, the firm aims to close its Private Sale within the coming weeks and launch the pre-public sale for retail investors in May.
The minimum investment during the Private Sale is 5,000 CHF. The ERC20 token has a nominal value of 1 CHF and is sold at a discount of 25 percent in the first round. Crowdlitoken accepts payments in EUR, CHF, and Ether. The STO has a soft cap of CHF 45m, hard cap of CHF 200m, and a target of CHF 100m.
CRT token replicates a bond and its underlying real estate assets
It’s the first time that the FMA has approved a tokenized real-estate investment product. In March 2019, Blockimmo sold the first tokenized real estate asset in Switzerland. One month later, Brickblock closed the first blockchain-based real estate deal in Germany.
Crowdlitoken’s token (ticker: CRT), however, is not an investment in a single property, but a digital representation of a subordinated bond which is based on a real estate portfolio. Both, the bond as well as the underlying properties are tokenized on the blockchain. Token holders can tailor their own digital property portfolio by allocating tokens to available real estate and choosing the preferred form of profit capitalization.
CRT enables investors to benefit from the token’s price appreciation and rental payments. According to Crowdlitoken, investors can expect a return ranging from 5 to 7 percent.
Domenic Kurt says, „This shows the evolution of the financial investments sector. Digital technology allowed us to launch a first-class product which does not only offer new ways to invest, but also comes with increased efficiency, lower costs, and enhanced transparency.”
Indeed, blockchain technology is going to fundamentally change the way we invest in real estate. Cheaper transaction costs, higher liquidity, and lower minimum investments will provide an attractive value proposition for both, developers and investors.