Germany’s financial regulator approves $280M blockchain real estate bond

Cryptocurrency • July 23, 2019, 10:05AM EDT
UPDATED: July 23, 2019, 11:15AM EDT
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Germany’s financial regulator, BaFin, has given the green light to a blockchain-based real estate bond worth €250 million (~$280 million).

The bond, offered by Fundament Group, is based on the ethereum blockchain and is backed by a portfolio of real estate properties across Germany, the firm announced Tuesday.

Claiming to offer the “first-ever” regulated real-estate backed security token, Fundament said the "Real Estate Token" securitizes a right or share certificate using a digital token.

The token is tradeable globally and allows investors to liquidate their investment at “any time they want on designated secondary markets.” Investors can make deposits and withdrawals in euros or ether (ETH), per the announcement.

Fundament co-founder, Florian Glatz, said the firm is already preparing to tokenize other “highly attractive assets.”

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Yogita Khatri profile picture Yogita Khatri

Yogita Khatri is a senior reporter at The Block and the author of The Funding newsletter. As our longest-serving editorial member, Yogita has been instrumental in breaking numerous stories, exclusives and scoops. With over 3,000 articles to her name, Yogita is The Block's most-published and most-read author of all time. Before joining The Block, Yogita wrote for CoinDesk and The Economic Times. You can reach her at [email protected] or follow her latest updates on X at @Yogita_Khatri5.

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