Kin Capital, a digital asset manager, has introduced a $100 million fund focused on tokenized real estate debt, launched on the Chintai network. The initiative marks a step toward integrating real-world assets with blockchain technology.
The fund is composed of first-performing real estate trust deeds. These agreements, typically between borrowers and lenders, allow the property to be held in a neutral third-party trust until the debt is cleared.
The initial offering starts with a $5 million tranche, with additional offerings scheduled through 2024 and early 2025. Accredited investors can participate with a minimum investment of $50,000. The fund projects an annual return between 14% and 15%, with quarterly distributions to investors.
Tokenization of traditional investment instruments, like real estate debt, is part of the broader trend toward bringing real-world assets (RWA) onto blockchain networks. This shift is intended to create greater efficiency, reduce costs, and enable 24/7 settlement. Reports from Boston Consulting Group and 21Shares suggest tokenized assets could exceed $10 trillion by 2030 under optimistic scenarios, while McKinsey’s more conservative estimate sees $2 trillion by the end of the decade with widespread adoption.
Chintai, a layer-1 blockchain, supports tokenized real-world assets and is powered by its native token, CHEX. Chintai Network Services Pte Ltd, the firm behind the network’s development, is regulated by the Monetary Authority of Singapore (MAS). The company is licensed to provide capital market services and facilitate digital securities trading on both primary and secondary markets. Chintai’s other arm, Chintai Nexus, operates in the British Virgin Islands and focuses on non-security token issuances. Kin Capital itself manages a blockchain-based marketplace for real estate investment funds.
David Packham, CEO of Chintai, noted that this partnership helps bridge traditional finance with blockchain innovations. He added that it provides accredited investors with access to stable returns in the evolving digital space.
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By Proptechbuzz
By Ravi Kumar
