Commercial real estate marketplace Red Swan is offering fractional, tokenized ownership of $2.2bn (£1.7bn) in institutional-grade property.
The New York City-based firm is working with tokenization platform Polymath and has a $4bn tokenization pipeline, according to its chief executive Ed Nwokedi.
Red Swan is running a pre-sale of $780m worth of tokens for potential investors. The firm takes a percentage of the equity issued.
The platform uses blockchain technology to track and store the tokens, which represent a fraction of a property—a real estate-backed digital security. The money raised will be held in escrow before tokens are issued in April. Tokens will sit in a digital wallet operated by Prime Trust and are backed by $1bn in insurance.
“Red Swan through tokenization makes it possible to invest in commercial real estate projects that are out of reach for private investors,” said the firm’s website, adding “this allows building owners to sell fractional ownership of their properties.”
The product is targeted at investors who have between $500,000 and $10m million but not enough to buy a large piece of quality real estate.
The current $2.2bn offering is made up of 16 Grade A commercial properties spread across the continental U.S. and Canada.