Our initial whitepaper on the topic of security token offerings (“STOs”) within the real estate sector laid out how security token offerings could be used to revolutionize capital raising within the real-estate sector.

In particular, we highlighted the following benefits and set out how the use of STOs could alleviate some of the pain points currently faced by industry participants.

  • Digital representation of assets
  • Widely regulated as ‘securities’ in major jurisdictions including USA, UK, Japan, Singapore, and Hong Kong

We have also analyzed the benefits of real estate STOs compared to two existing structures – private real estate funds and real estate investment trusts (REITs).

2021 witnessed an increase in interest in STOs, with a marked rise in the number of exchanges that support STOs. Currently, there are approximately 20 exchanges or trading platforms globally that hold licenses to trade or issue STOs in compliance with local regulatory regimes.

Although the number of transactions is steadily increasing, we view the market as still in the early stages. Our focus with this white paper is to dive deeper into the use of STOs within the real estate sector.

In this paper, we will illustrate the end-to-end process of an STO and showcase featured examples of fundraising by way of a real estate STO. We will also highlight insights from capital markets practitioners on the key considerations for issuers and investors engaging in an STO.

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