Thailand-based Fraction has received a regulatory license to use the Ethereum blockchain, which will allow traders to buy micro-shares of luxury real estate
September 16, a subsidiary of the fintech firm Fraction Group
announced obtaining a license to place and sell tokens for fractional ownership of physical and digital assets.
The license is granted through the Thai SEC portal, created in 2018 for the IPO. The document will form the basis for the Fraction service, which will deal with:
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initial digitization and fragmentation of assets;
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initial offer of shares to investors (IFO);
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trading fractional tokens among investors in the secondary market;
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provide intermediary services.
The company intends to hold an IFO in the first half of 2020. The main focus will be on real estate tokens and local firms. Fraction is considering a $ 460,000,000 IFO.
“You can now legally own part of this villa. It might be 1%, but you don’t have to pay $ 5,000,000 to buy it all, ”said Eka Nirapatpongporn, CEO and co-founder of the company. The minimum amount to participate in the IFO is about $ 150.
“Even though many have talked about this and tried to make a similar platform, ours is operational and ready for asset allocation,” said Sean Sales, CTO and co-founder of Fraction Goup.
The area of tokenized property remains niche. This is due to the vague regulatory requirements for such proposals and the development of technology.
British accounting network Moore Global estimates market development at $ 1.4 trillion in the next 5 years, subject to 0.5% of the global real estate market being tokenized.
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