In the recent past, institutional-level real estate investment was a dream for individuals or small businesses. With the advent of blockchain, it has become realistically possible to invest with the industry’s big guns and gain consistent ROIs. Through strategic alliances and partnerships with some of the most successful real estate developers in the United States, FraXion develops ‘Digital Asset Partners’ and allows token holders to invest in prime income-producing properties and land suitable for rapid commercial development. With FraXion, everyone can make their dream come true and invest in real estate with as little as $1000. This possibility allows a person to be a part of significant real estate projects that yield the best outputs within a specified period of time.
For centuries, investing in real estate assets has been a reliable means to acquire wealth. The recent decades have been extremely productive in terms of countless self-made millionaires. However, the tenets of real estate investing haven’t evolved much over the years, and thanks to the advent of blockchain technology, a major shakeup is on the way. Real estate specialists and investors see asset tokenization as a method to improve the real estate investment sector, give investment opportunities to eager financiers, and potentially spur further economic growth. According to a recent analysis by the international advisory and accountancy network Moore Global, “even if only 0.5% of the overall global property market gets tokenized in the next five years, it would become a $1.4T market.” Even if only a tiny fraction of traditional real estate is digitalized, investors will get access to a significant investment pool.
How Does It Work?
The process revolves around tokenization of real estate. Asset tokenization is the process of digitising an item by fractionalizing it into divisible fungible tokens that may subsequently be exchanged at users’ discretion.
Asset tokenization might function similarly, with divisible tokens reflecting a share of an ownership stake in a different asset. This may mean that a residential property is tokenized in real estate, with 100 individual digital tokens representing a 1% ownership stake in that property.
FraXion security tokens are cryptographic assets that are issued as smart contracts on the Ethereum blockchain. Ownership of a blockchain asset is established by recording an owner’s unique identifier address, or ‘public address’, and the quantity of the support possessed by such an address on a blockchain ledger.
FraXion tokens are digital assets that are invested in real estate projects managed by top-tier real estate development partners. The partner funds are highly diversified, holding only institutional-grade real estate and assets in some of the most valuable locations in the United States.
FraXion is a one-of-a-kind secure smart token with an easy-to-use investment platform that offers security tokens backed by income-generating real estate holdings. As a result, they are creating digital assets that can be traded and easily exchanged, giving the Digital Asset Partners flexibility and potential liquidity options.
To become a digital partner, everyone interested can visit the official website, and click the link to buy a token. After that they will be taken to the secure private portal to verify their digital wallet. After that, they will be issued FraXion tokens, including a smart contract on the Ethereum blockchain. Each digital token represents a fractional debt interest in money received via RMCG Digital Holdings, Ltd. investments and the opportunity to earn 10% per annum over the 5-year life of the token (50% ROI).
Firstly, unlike traditional real estate investment, which needs capital to be locked in for an extended time, FraXion digital tokens may be securely and efficiently transferred over a blockchain network. Tokenization thereby increases liquidity by making trading cheaper, faster and easier.
Secondly, investors may create highly diversified portfolios with low costs and a virtually open global market. They may easily purchase fractional interests in shopping malls, movie theatres and apartment complexes, as just a few examples.
To reduce the high costs of conventional real estate, FraXion tokenization implements fractioning. Unlike traditional real estate, which requires investors to acquire the whole property, tokenization lets ordinary people acquire stakes in smaller portions of the same property, increasing accessibility to investment at a lower cost ($1000). Tokenization has significantly reduced investment costs, giving opportunities to a larger range of investors. Tokenization also decreases procedural barriers via digitalization. Unlike traditional real estate, which is only available to regional investors during local operating hours, real estate tokens may be traded across borders at any time.