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The StandardHong Kong · September 11, 2023
Titular original: “Real estate token launched in city”
Key points
The Hong Kong newspaper The Standard reported in September 2023 that Tykhe Capital launched its Prince Token in the city, presented as Hong Kong's first real estate security token offering, available only to professional investors. Such an offering consists of issuing, via blockchain, a digital token representing ownership of assets or a share of profits.
The funds raised would be used to purchase a commercial property with five units in Prince Edward. The tokens are offered by a closed-end fund managed by a subsidiary of the company, with a minimum investment of 1,000 Hong Kong dollars, compared to the average threshold of one million US dollars usually required by private real estate funds. According to the company, holders will be entitled to annual rent distributions and future property appreciation.
The company indicated it will open a digital wallet for each investor, that the tokens have virtual asset insurance from a local insurer, and that, subject to regulatory approval, it will seek to list them on a virtual asset platform of the same group.
The case shows that in several jurisdictions the first tokenized products are reserved for professional investors. For those investing in fractions, knowing the investor category a product targets indicates the expected level of regulatory protection.
The possibility of listing tokens on a platform of the same group raises questions about conflicts of interest and secondary market depth.
General analysis of CityFraction. This is not investment advice.
Resumen elaborado por CityFraction a partir de la nota publicada por The Standard. La nota no menciona ni respalda a CityFraction. Las cifras y opiniones son del medio o de las fuentes que cita.