Securities dealer Ocree Capital has launched a Canada-regulated real estate platform to allow investors to access to tokenized stocks in commercial real estate on the Polymesh blockchain.
The new Ocree platform debuted on March 24th on a $51.9 million commercial real estate listing in Winnipeg, Manitoba. The featured property is the 156-unit Class “A” multi-residential development.
Ocree said $4 million in shares have been offered to investors via fractional shares.
“Investors don’t provide liabilities. They’re participating in equities in assets,” Ocree CEO Ted Davis told Cointelegraph. “Investors buy interest in limited partnerships investing in underlying real estate.”
15 Berwick Court in Winnipeg, Manitoba is the first commercial real estate listing on Ocree’s platform. Source: Google Maps
This property has been fully tokenized in Polymesh, a dedicated blockchain for real assets (RWAS). As reported by the Cointelegraph, Polymesh was chosen last summer to tokenize a $2.5 million church in Colorado.
“Based on the public permitted blockchain within Polymesh’s facilities, we have created a platform that benefits both property owners seeking liquidity and investors seeking access to premium real estate opportunities,” Davis said.
Ocree is an Exemption Market Dealer (EMD) registered with the Ontario Securities Commission (OSC) and has licenses in all Canadian provinces and regions except Quebec. EMD status allows Ocree to distribute real estate to certified investors and other qualified individuals.
“The registration process took nearly a year to complete and there were multiple conversations with OSC before and after the registration process,” Davis said.
Related: Dubai Land Division launches real estate tokenization project
Tokenization takes off
The process of tokenization or representing real-world assets on blockchain has swept the traditional financial industry in recent years.
Major financial institutions such as JPMorgan Chase, UBS, Citibank, HSBC and BlackRock have shown their intention to provide tokenized products and services. In Canada, RWA players like Atlas One, Taurus and Polymath also offer facility-grade RWA platforms.
The tokenization process from structuring transactions to secondary market transactions. Source: Cointelegraph
There is a reason why major banks are pivoting to turn them into tokens. In addition to increasing liquidity and making it easier for buyers and sellers to connect easily, RWA solves many bottlenecks in the traditional financial industry, according to Matthew Burgoyne, a partner at Canadian business law firm Osler. He wrote:
“Finance transactions, particularly cross-border financial transactions, are often lagging behind as a result of the large number of intermediaries needed, particularly in execution and settlement. However, the distribution and transparency nature of ledgers surrounded by tokens promotes remitted settlements at reduced costs compared to traditional finance.”
For these reasons, industry research shows that tokenized securities could become a multi-billion dollar market by 2030.
The tokenized real estate market remains small compared to other tokenized trends. Source: rwa.xyz
According to RWA.xyz, with the exception of Stablecoins, Rwas Onchain totaled $31.3 billion. This represents a 94% increase over the last 30 days.
Related: Trump-era policy could fuel a surge in tokenized real-world assets
