A Game-Changing Digital Platform for Real Estate Capital Markets
Case study
Real Estate Tokenization Platform
Business line
Capital Market
A regulated platform to boost global real estate investments with the power of tokenization with the vision of ushering-in an era of cost-efficiency, product innovation and greater liquidity.
The challenge
Navigating the Client's Challenge
Challenges in Real Estate: Financing Constraints and Investor Access Barriers.
Due to the current macroeconomic context, real estate entities are finding it increasingly difficult to secure financing. Traditional financing avenues are either too costly or completely inaccessible, putting a strain on the sector's growth and innovation capabilities.
The high entry barriers in the real estate industry, underscored by hefty capital requirements, prevent a large segment of potential investors from participating in the market. This not only stifles market growth but also limits the democratization of wealth creation through real estate investment.
The financial markets exhibit significant inefficiencies, particularly in the realm of private real estate investment. Operational and regulatory-led costs are exorbitantly high, and the offerings in private markets are severely limited, deterring investment and innovation.
Although technology has permeated many industries, the real estate sector has seen few tech-enabled investment options. The existing solutions are often small-scale, unscalable, or unregulated, failing to instill confidence or meet the growing demands of modern investors.
Solution
Innovative Solutions Provided
A gateway to unlock Real Estate sector: this innovative platform is accessible to a broad spectrum of issuers and investors, effectively lowering entry barriers and democratizing real estate investment.
Openbrick emerges as a transformative solution to the aforementioned challenges—a regulated, cutting-edge digital securities platform that facilitates the issuance, management, and trading of high-quality real estate assets in both primary and secondary markets.
ioBuilders adeptly engineered a solution that empowers Openbrick to proficiently issue and manage the life cycle of different types of securities for the Real Estate sector, represented on Distributed Ledger Technology (DLT).
ioBuilders encountered a significant challenge in ensuring compliance with the Markets in Financial Instruments Directive (MiFID) to establish a Multilateral Trading Facility (MTF) during the development of the project.
The solution meticulously accounts for the diverse market participants involved in the process, delineating their responsibilities in accordance with EU regulations.
The participants encompassed within this ecosystem include issuers, brokers (representing investors), direct investors, and the market operator, who is entrusted with the market's management.
Adherence to these regulations was instrumental in Openbrick's selection by the CNMV (Spanish regulator) for collaboration within the Spanish Sandbox framework.
The processes integrated into the solution span the creation of different types of digital securities, their issuance and primary market introduction, the trading of these securities on the secondary market (compliant with regulations to be recognized as a Multilateral Trading Facility), and the execution of various corporate actions such as coupon payments, dividend distributions, and amortizations.
Openbrick's operations are underpinned by an array of customized smart contracts designed and implemented by ioBuilders. These contracts facilitate the seamless orchestration of asset creation and deploment on DLT, the subscription and distribution, the secondary market activation and trading, and the set and automation of corporate actions. Through automation and streamlining, these processes achieve enhanced efficiency and security.
The Openbrick back office furnishes a robust interface for various actors to interact with the platform. The platform is engineered for seamless setup and configuration, accommodating a wide range of functionalities including custody, payments, reporting, market opening times, currency selection, and more.
case studies
Regulated Tokenized Corporate Bond using Blockchain
Bolsas Mercados Españoles (BME), a company of the SIX Group, is the operator of all the stock markets and financial systems in Spain.
A Game-Changing Digital Platform for Real Estate Capital Markets
A regulated platform to boost global real estate investments with the power of tokenization with the vision of ushering-in an era of cost-efficiency, product innovation and greater liquidity.
Syndicated Loans Tokenization
A multinational financial services industry leader. It is one of the largest financial institutions in the world, and is present mainly in Spain, South America, Turkey, Italy and Romania.
Shaping the Future of Fan Engagement with NFT Strategy
A pioneer in the entertainment sector, specializing in character-based storytelling across multiple platforms with a diverse portfolio in film, television, digital media, and merchandise.
Beyond the technology
Are you interested?
