Michael WongJune 19, 2019

Tokenizing Real Estate

Who are we?

Technology Arm

Financial Arm

Our Company: A HK FinTech Venture

▪ Unique Alternative Asset Investment Manager

▪ Fully regulated by HK SFC (#4 & #9)

▪ 1st in HK licensed with digital asset operation

▪ Blockchain technology expert

▪ Asset fractionalization / smart contract

▪ Combined pool of expertise across HK, TW, China

Tokenizing Real Estate Assets

Problem: Few Can Access/Afford Real Estate Investments

▪ High entry barrier / large ticket size

▪ Hugely illiquid – capital lockup

▪ Limited asset types

▪ >$250T assets available to <5% of population

▪ Reduced ticket size

▪ Secondary market → Exit

▪ Many more asset types - Diversification

▪ Global access to investment opportunities

▪ Appeal to Next Gen Investors: easily accessible online

Solution: Fractionalize & Securitize Real Estate with Blockchain

Ledger Ledger

LedgerLedger

Combine Blockchain technologies with backing of traditional finance - bridge the gap between finance and crypto markets

Tokenization of Assets

Regulatory requirements are clearly defined for securities

Important to both retail and institutional investors

Fractionalize ownership of debt or equity portion of a real estate asset and digital ownership certificates stored on blockchain and immutable

Tokenization Process

Rental Income & Value Growth

Regulated activities

Due Diligence & Legal Verification

Fund VehicleSecuritization / Tokenization

Listing on Exchange

Qualified members purchasetokens

Exit via Secondary Trading

Asset deal arrives(as a whole or partial)

Factors of Consideration DebtPrivate Equity

Equity Crowdfunding

REITSecuritized

Asset Tokens

Capital Raising Cost High Med Low High Low

Liability Risk High Low Low Low Low

Investors Diversification Low Low Med High Med

Retain Control / Rights Med Low High High High

Flexibility in asset type (single asset, pre-developed, non-trad)

Low High Med LowHigh

(asset or cash-flow)

Entry Ticket Size High High Low – Med Low Med

Secondary Market Liquidity Low Low Low High Med (24 x 7)

Dividend / Yield High – Stable Med Med Low Med

Asset Value Growth None High High Low High

Risk Diversification N/A Low Med High High

Tax Efficiency N/A High Med High High

Comparisons of CRE Business Financing Options

BusinessOwner

Investors

Evolution of Financing Options

Example: St. Regis Aspen Resort

179 Rooms, 25 apartments, 44,000 sq ft

communal space

$18M Raised & Tokenized (~19% of equity)

The rest of equity remained with owners

“Aspen Coin”: 18M in supply, US$1 ea.

Min. investment: US$10k for accr. Investors

Benefits to owner: Lowered cost compared to

IPO, retain control of asset

Considerations when Tokenizing Real Estate

Select “right” asset – size, fit

Develop the offering strategy

Token economics

Structuring Due Diligence Legal

Technology Marketing & Fundraising Listing on Secondary Markets

Regulated Security Token Exchange

Token Support

Listing criteria

Ownership / Legal

Financial & Tax

Independent valuation

Offering docs

Operational review - compliance

Disclaimers

Public vs. Private Blockchain

Token Type / Smart Contract

Issuance Platform

(e.g. MaiBlocks)

Public vs. Private Blockchain

Token Type / Smart Contract

Distribution channel – licensed

(e.g. MaiCapital)

$

Participate and Increase market liquidity

◇ “Stable” digital asset investment

◇ More licensed platforms

Call to Action

Additional regulation clarity for handling / dealing with Tokens

Regulated participants are far & few

Educate & Embrace

◇ “Traditional” industries and participants

◇ Investors & Institutions

Qualified Buyer

Token$

Our Service: Online Fractionalized Asset Marketplace

Blockchain & Smart Contract → Securitize & Split Asset → Digital Shares

Asset(whole or partial)

Co-InvestorsAsset Owner

$ Capital

List & Sell OTC Trade

Asset-backed Digital Share

$ or Stablecoin

Digital Share

$ or Stablecoin

Globally Transferrable

DividendPayout

Auditable & Legal

Voting / RIghts

Seller

Digital Share

$ or Stablecoin

Digital Share

$ or Stablecoinviavia

www.maiblocks.comComing soon in H2 2019!

Asia Security Token Alliance

WHO ARE WE?

• Independent & Not-for-Profit

• Membership-based Association Registered in HK

• Represent Asia’s local Security Token community,

across all relevant industries

ASIA

SECURITY TOKEN

ALLIANCE

asiasta.com

MISSION

• To develop and formalize Security Tokens into a new class of

alternative and legitimate financial product

• To empower and educate service providers and investors

(guidance, events, articles)

• Provide a unified voice from the industry to collaborate with

regulators and external participants

• Create a landing portal for overseas participants

• Initial focus in HK, then expand to Asia

ASIA

SECURITY TOKEN

ALLIANCE

asiasta.com

Thank you