(BlockBar) German regulating institutions have approved the sales of ETF tokens equivalent to $280 million.
Fundament, a block chain startup, has been approved by regulations to launch its first public token-oriented support bond for real estate to individual investors. The Berlin-based company announced on Tuesday that it had received approval from BaFIN, the German financial regulator, to issue 250 million euros ($280 million) tokens. Due to proper supervision, tokens have no minimum investment restrictions and will be open to all individual investors.
The representative of BaFin said, “We confirm to approve the prospectus of Fundament Group. This is indeed the first time that we have approved such a prospectus for block-chain real estate bonds, although this is not the first approved block chain application.” The token will be marketed next month and will run on the public block chain of Ethereum at the ERC-20 standard, which was popular in the2017 ICO boom.
Block chain real estate is a hot sector. Florian Glatz, co-founder of Fundament Group, said that in the past, it used to be private sales without prospectus or the need of the approval from financial market regulators. In March, for example, Inveniam Capital Partners tokenized four private real estate and debt transactions worth $260 million in a WeWork estate in downtown Miami, Florida.
Fundament’s token will cover five construction projects: three in Hamburg, one in Frankfurt and one in Jena. The project will cover residential, commercial and hotel properties with a total area of more than 680,000 square feet. The company expects the project returns to be in the mid-to-high level. “Holding tokens guarantees that holders have the right to claim demands on bond issuers to pay them a dividend of about 4-8% a year. What’s more, once the fund runs bad or is withdrawn, token holders will receive the full value of the fund,” Glatz said.
In order to comply with KYC (Know-your-customer) and AML (anti-money-laundry) regulations, IDnow will be responsible for verifying the identity of token purchasers. The process takes an average of three minutes, after which users can purchase tokens. Buyers can pay tokens in bitcoins, ETH, dollars or euros.
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