DigiShares

Equito App – Making Real Estate Investment Accessible to Everyone with DigiShares

March 18th, 2024

Equito’s collaboration with DigiShares underscores their commitment to democratizing real estate investment. Through tokenization and strategic partnerships, Equito empowers individuals to participate in the lucrative real estate market, revolutionizing investment accessibility and fostering financial inclusion. As they continue to expand their offerings and explore innovative blockchain solutions, Equito is poised to shape the future of real estate investment.

About Equito

Equito is a pioneering Spanish start-up operating at the intersection of real estate and financial technology. Their mission is to revolutionize the accessibility of real estate investment opportunities, making it available to individuals with as little as €100 to spare. To achieve this vision, Equito leverages tokenization technology, breaking down traditional barriers to entry and offering investors proportional ownership in lucrative real estate assets.

Equito’s Approach:

Equito’s innovative approach involves tokenizing residential real estate properties valued between €100,000 to €350,000 into tokens worth €100 each. Investors can purchase these tokens, representing proportional economic rights over the property. Once all tokens are sold, Equito acquires the property. The management and rental income generated from the property are handled by Equito, with profits distributed among token holders based on their percentage ownership. For instance, owning 1% of the tokens entitles an investor to 1% of the net rental income. Additionally, when Equito sells the property, token holders also share in the capital gains realized from the sale. This innovative model provides investors with a passive income stream through rental earnings and potential capital appreciation upon property disposition.

This fractional ownership model allows investors to participate in rental income and potential capital gains. By dividing properties into tokens, Equito enables investors to enter the real estate market with minimal capital, opening up lucrative investment avenues previously inaccessible to many.

Why Tokenization?

Equito recognizes several key advantages of tokenization:

  • Lower Entry Barrier: Fractional ownership reduces the minimum investment amount, democratizing access to real estate markets.
  • Enhanced Liquidity: Tokens facilitate easy exchange between users, increasing market liquidity.
  • Transparency: Blockchain technology ensures transparency in contracts and transactions, fostering trust among investors.

The First Project:

Equito’s first project involved a four-bedroom property in Barcelona valued at €317,741. Through tokenization, they attracted investment from 943 individuals, renting out the property on a per-room basis. Despite the initial challenges, Equito successfully financed the project in seven months, with subsequent projects achieving funding in as little as one hour to one week.

Partnership with DigiShares:

Equito’s choice of DigiShares’ white-label technology for tokenization proved instrumental in their success. By entrusting tokenization to DigiShares, Equito could focus on user experience and business growth, accelerating their market penetration and enhancing investor confidence.

Blockchain Integration:

Equito opted to issue their Equito Tokens on the Polygon blockchain, prioritizing scalability and cost-effectiveness. However, they remain open to exploring other blockchain solutions in the future to maintain a competitive edge.

Target Audience and Minimum Investment:

Equito primarily targets retail investors in Spain, offering a minimum investment of €100. Their platform has garnered significant traction, with over 110,000 downloads and approximately 70,000 registered users, reflecting the growing demand for accessible real estate investment opportunities.

Learn more about Equito App here: https://equito.app

About DigiShares

DigiShares provides white-label solutions for the issuance, corporate management and trading of digital assets. With offices in Denmark, the US and Germany, DigiShares is a global provider of tokenization software for investment management, corporate management, and trading of tokenized securities. DigiShares has around 150 clients globally using its software.

Website: www.digishares.io | www.realestate.exchange

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