Fraxtor, a Singaporean proptech firm, disclosed that blockchain technology can help create new opportunities for investors with a decentralized property investment platform.
Jordan Kostelac, Director of Proptech, JLL Asia Pacific, revealed that blockchain technology could potentially be utilized instead of traditional ownership instruments such as share certificates and title deeds, according to Crowdfund Insider. He stated:
“Now everyday investors like you and me can actually own a piece of grade A office tower in the biggest cities in the world. From an asset holder standpoint, it creates new sources of liquidity and allows them to improve that asset or creating yields from that asset by dividing up the ownership. In the same way as companies do in public offering of their equity.”
Meanwhile, Oliver Siah, Co-founder and CEO of Fraxtor, said the firm has allowed investors worldwide to take part in owning physical assets using tokens issued by Fraxor called Frax, which are backed by properties through a “digital SPV.”
“Investing in premium real estate is often out of reach for the average investor as it requires high capital outlay and is very illiquid […] With Fraxtor, I hope to be able to democratize real estate investment,” Siah said.
In July 2019, Fraxtor launched its first freehold landed residential project in Singapore. The company also revealed it is seeking other real estate projects in cities such as Tokyo, Melbourne and Berlin.
“Other than development projects, we are also looking at investment properties from all over the world, and these can range from hotels, commercial buildings and even nursing homes […] We also want to welcome other real estate funds and developers to utilize our platform to fund their projects,” Siah added.
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