DigiShares, a leading provider of white-label tokenization solutions for real assets has partnered with BAHGS Fund, a blockchain-based marketplace that seeks to fractionalize ownership for affordable residential real estate in the US.
As part of their cooperation, a white-label platform for tokenization of real estate will be launched.
This will allow BAHGS Fund to list residential and mixed-use properties on the DigiShares platform that will provide investors early liquidity options through the issuance of asset-backed digital securities.
The new partnership aims to create a bridge between traditional financial players and the emerging fintech sector by using the strength and expertise of financial investors and the creativity of tokenization technology.
This will also be the first public Security Token Offering (STO) backed by affordable residential real estate at this scale, with an initial fundraising goal of $11,880,000 but with many subsequent offerings planned under the terms of the white-label partnership.
Today, the global real estate market is worth $228 trillion, but only 7% of that is available for retail investment. By using distributed ledger technology, investors can reduce their initial investment cost and diversify their capital into multiple projects.
Edward Mason, BAHGS CEO, says, “we are excited about this partnership. We view DigiShares as one of the leaders in real estate tokenization and expect to tokenize a number of exciting real estate opportunities on their platform”.
Claus Skaaning, DigiShares CEO, says, “we are excited to partner with BAHGS in this underserved part of the US real estate market. We believe that tokenization technology will be very helpful in bringing equal opportunity and liquidity to the real estate markets”.
BAHGS Fund, founded in April 2020, is a blockchain-based marketplace that leverages tokenization technology to fractionalize ownership of real estate. By investing through BAHGS Fund’s platform, small investors as well as major institutional companies can invest in affordable residential real estate as the platform incentivizes capital gains investments with a social impact.
Their real estate is usually located in the so-called Qualified Opportunity Zones which are underserved communities across America’s rural and urban areas.
BAHGS Coin offers fractional ownership of asset-back investments while providing people with affordable, sustainable and green homes. The partnership makes it possible to accept 10,000 investors into a real estate project instead of 10 or 100, while also giving them the ability to trade digital assets peer-to-peer.
Over the next year we will offer $237M of affordable shipping container homes, as well as other projects backed by real estate, profit sharing agreements and other real world assets.