Press conference CROWDLITOKEN

For the first time in Europe, the Liechtenstein Financial Market Authority (FMA) has approved the prospectus for a tokenised real estate investment product. CROWDLITOKEN AG will soon start issuing digital real estate bonds in ten European countries via a security token offering (STO). By using blockchain technology, qualified investors and for the first time retail investors are enabled to invest in first-class real estate in Europe.

CROWDLITOKEN AG – evolution in real estate investment

In mid-April, the FMA approved the application submitted by the Liechtensteinbased start-up CROWDLITOKEN AG, thus creating the foundation for a new generation of digital financial investment products. The distribution authorisation for retail investors allows the company to distribute security tokens in the core countries of the European Economic Area (EEA). Investors domiciled in Liechtenstein, Germany, Austria, Italy, France, Belgium, Luxembourg, the Netherlands, Ireland and the United Kingdom will be the first beneficiaries of this new opportunity. In a first phase, CROWDLITOKEN AG has already gained selected qualified investors to allocate funds to the bond offering. With the prospectus approval by FMA secured, the private sale can be completed within the next few weeks and the second public phase – the pre-public sale for retail customers – will begin in May. The ability to invest small amounts in selected European real estate (starting at CHF 100 or EUR equivalent), the easy tradability and the investment flexibility are key innovative features of this unique real estate investment product. It shall soon be possible to also benefit from this offering in Switzerland – as a first step for qualified investors. The respective application is currently being considered by the Swiss Financial Market Supervisory Authority (FINMA). “The prospectus approval by FMA is an important milestone for us, setting many wheels in motion,” said a delighted Reto Fierz, Chairman of the Board at CROWDLITOKEN AG.

The tokenisation of real estate

CROWDLITOKEN AG targets to raise CHF 100 million through the STO, the funds will be used to build up the real estate portfolio. CROWDLITOKEN’s clear goal is to bring real estate investments into the digital era by using blockchain technology and thus democratise access to the market. To this end, the company is launching a security token that combines the advantages of direct and indirect real estate investments. Domenic Kurt, CEO of CROWDLITOKEN AG, commented: “This represents an evolution in the world of financial products. New technologies are enabling us to launch a first-class product that not only offers new investment opportunities, but also remedies inefficiencies, cuts costs and safeguards transparency.” In concrete terms, the product is a digital representation of a subordinated bond, whereby both the bond as well as the underlying real estate is digitised via blockchain. The token – named the “CRT” – replicates the income streams and the value changes of the real estate properties. Holders of the tokens will benefit from an attractive yield of 5–7% p.a.

On the road to a digital financial world

Blockchain technology is opening up new opportunities: it allows consumers and service providers to link up directly with one another, simplifies market access and increases efficiency. With the prospectus approval by FMA, the Liechtenstein-based company is enabling new investors to make direct investments in a market previously reserved for the wealthy and is thereby breathing fresh life into the investment industry.

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