RealX creates breakthrough in Digital Assets space - issues property tokens with direct legal rights on property

RealX.in issues property tokens on Algorand that have direct and enforceable legal ownership on properties completing first such commercial transaction globally

MUMBAI, MAHARASHTRA, INDIA, August 15, 2023/EINPresswire.com/ -- RealX, a Digital Assets platform, announces completion of its first commercial transaction that recorded property co-ownership on Blockchain and token holders being issued property tokens after due registration process of a property.

This is a significant global milestone in Real World Digital Assets space. Real World Digital Assets (RWA) are considered the most acceptable frontier for development of Blockchain as it converges the traditional assets and traditional finance with the advantages of Blockchain.

Manish Kumar, Cofounder and CEO of RealX says,
“Lack of access to good opportunities can be attributed to be a big contributor in the wealth gap that we see increasing every year. The only solution to this is to bring legitimate products that so far were inaccessible to most of us and make it accessible to everyone digitally and in affordable amounts. This is the core of what we want to do at RealX and we wanted to do it in a way that falls within the extant legal ambit as well as leverage best of technology for the benefit of our customers.”
 
The Challenge
However, there remained a legal gap between the ownership of the Real-World Asset and the Digital Token holders. There was lack of legal linkage between the two and this has been the biggest challenge in the product evolution preventing it from reaching its full potential. In case of immovable properties or Real Estate, the laws and processes involved make this challenge more formidable.

Core Solution
RealX had already introduced an industry leading innovative solution called Registered Co-Ownership (RCO) as its first product wherein it offered a registered property deed with single registrant (as Principal Custodian) on behalf of all co-owners investing in the property.

The current product is an extension of the earlier one but with the advantages of blockchain, smaller investment sizes, easy transferability and greater customer control. It now offers blockchain based Property Tokens (NFTs) that will provide the token holders direct and proportional beneficial ownership of the property. The Property Tokens will mean a proportionate direct ‘Right to Registered Co-Ownership’ (RRO).

Saya Neera Inamdar, Cofounder and COO of RealX
“Our product is pretty simple to understand has been developed in line with similar products in the market, so that our customers can understand it easily and it can maintain its legal sanctity as well. Most of us understand Futures and Options (F&O) products in commodity (and equity) markets. In the commodity markets, there is an Option to delivery of a commodity; At RealX the Token holder holds a similar Option note to become a Registered Co-Owner. While depositories are registry for regular F&O, at RealX we have deployed public Distributed Ledger Technology as a registry.”

Converging the world of Blockchain with traditional finance and a difficult asset class like properties and various laws impacting them is a global first feat achieved by RealX.

The co-ownership construct of RealX, making token holders direct beneficial owners of a property, is very different from all other fractional ownership platforms operating globally and uses base property laws available to create a compliant model.

There have been others who have tried to achieve fractional ownership of properties by issuing tokens. However, at the base they are still using the SPV method, and the tokens represent the securities. These constructs will always be constrained by regulatory and company law requirements and be restricted. RealX construct breaks all these barriers and gives direct beneficial ownership rights to the people investing to buy the tokens.

Mohita Gupta, India Project Lead, Algorand Foundation says,
“RealX's approach to fractional ownership and property tokenization showcases a remarkable leap in the realm of real-world asset digitization. Their platform democratizes access to high-value properties with direct ownership rights which is a testament to their commitment to reshaping the future of investment and ownership. We're dedicated to fostering collaboration and driving meaningful impact in Bharat as we pave the way towards a decentralized and inclusive future.”

Neera Inamdar
RealX Marketplace Pvt Ltd
hi@realx.in
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