Pacific Digital Assets, Part 1

avatar

Building my Private Equity Firm, Pacific Digital Assets

  • Pacific Digitl Assets is a company I am building to create a large partnership of investors who invest in tokenized real estate. But I need investors, and one name for what I am building is a Private Equity Fund. A fund, which invests other [peoples money, into assets , from which all the investors make money. I plan to form the fund, thus manage the fund, so I need a concrete plan and expertise.
  • Plan, Do, Act, Check
  • This is my plan.

Plan

  • Research Private Equity and acquire a blueprint to achieve my goal

Blue Print

  • Find a great Deal
  • Create a framework or pitch deck
  • Pitch to investors, receive feedback, modify pitch deck, pitch to investors
  • Complete Legal Docs

Find a deal

  • The biggest impediment to raising money is not believeing in the deal
  • You must find and formulate a plan that you are convinced will work
  • The plan can be improved upon for free by investors when you Pitch the plan

Frame the Deal

  • Create the PowerPoint or PitchDeck to explain the deal and how it will profit and how investoprs wil get paid and how you will get paid

Pitch to investors

  • Now that you have a polished presentation explaining the deal, and how everyone gets paid, you meet with investors to ask for investment in this Deal.
  • Every investor who you speak to , is a source of ways to improve your pitch and increase your chance of success in raising money for your deal.

Legal Documents

  • Now that you have the great deal, created the pitch and raised money, you can spend money on the legal documents.
  • Now you can spend money knowing you have a deal, and knowing you will get reimbursed for the legal costs because you are building your investors a deal.

Now to learn more about making this happen...

Posted Using InLeo Alpha



0
0
0.000
6 comments
avatar

Stobox is a turn-key provider of RWA tokenization services, active since 2018.

The company had the privilege of working with over 60 issuers from a dozen different industries, with fundraising targets ranging from $30,000 to $300M, scattered across all five continents.

Assets include real estate, metals deposits, private equity, crypto mining facilities, etc.

All such engagements involved legal issues, which granted the company a solid and diverse base of explicit and tacit knowledge.

A powerful side of Stobox’s expertise is a pragmatic approach to legal issues within the broader context of the client’s needs.

Questions addressed in such engagements aren’t ”How to structure a token offering?” but “How to structure a token offering at a reasonable budget within realistic timelines?”.

The company’s issuers highly value adaptability to unique needs and requests.

Here, on the cutting edge, the Stobox team faces a variety of innovative business models that don’t fit pre-determined molds and require thoughtful, creative approaches. “First-principles thinking” over “One size fits all”.

This article addresses some of the most commonly asked questions and aims to prepare prospective issuers for the intricacies of the legal aspects of RWA tokenization.

Which legislation applies to tokenized RWAs?
Asset tokenization involves multiple layers of legislation, which is the primary source of legal complexity.
The following ones should be considered:
Securities law
Most asset-backed tokens fall under the definition of securities. Assets have financial value primarily when income-generating, and some form of profit on tokens is usually enough to be considered securities. This legislation, among other things, introduces the requirement to disclose information to investors and obtain registration before selling tokens.
Financial markets law
Entities that engage with securities and provide related services often need to be authorized by competent authorities. Financial market legislation defines relevant licenses and the authorization regime.
Corporate law
RWA tokens often function as shares or bonds. The rights of holders of such assets are described in corporate law. Its convenience is an important factor in choosing a jurisdiction for the token issuing company.
Virtual assets laws
As RWA tokens are virtual assets, they may also need approval under virtual asset laws, and entities facilitating transactions may need to register as virtual asset service providers.
AML legislation
Ensuring the safety and transparency of financial markets is a shared responsibility. All entities involved, including issuers and platforms, must implement KYC/AML programs to ensure no illegal funds are used to purchase RWAs and no income from RWAs is used for illegal purposes.
Tax codes
Investors and issuers must pay taxes, and this has to be taken into account when designing the structure. Given that most issuances are cross-border, double taxation and withholding taxes become an especially important issue as they can eat a large portion of profits. For example, Switzerland applies a 35% withholding tax on dividends to foreign residents (subject to rebates), which can take returns from above-market 10% to below-market 6.5%.
Consumer protection
For utility tokens that facilitate consumption, consumer protection law might apply. However, the authors haven’t seen any lawsuits based on these laws, so this is currently a more theoretical consideration.
Data Protection
RWA issuers and platforms collect user data and must ensure its proper protection.
Though this list can seem daunting, there are solutions and procedures to comply with all the applicable legislation. Many of these things are built into technical solutions, including the Stobox DS Dashboard.

0
0
0.000
avatar

Congratulations @shortsegments! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)

You distributed more than 110000 upvotes.
Your next target is to reach 115000 upvotes.

You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

Check out our last posts:

LEO Power Up Day - November 15, 2024
0
0
0.000
avatar

What is real estate tokenization?

  • Real estate tokenization is the process of converting a real estate property or its cash flows into digital tokens on a blockchain:
  • Tokenization can make real estate more accessible and flexible, and can streamline processes:
  • Lower entry barriers: Investors can buy as much or as little shares as they want.
  • Reduced risk of fraud: Smart contracts automate the process of buying and selling shares, making the chain of transactions more traceable.
  • Increased transparency: Decentralization and the elimination of intermediaries reduce counterparty risk.
  • Cost efficiency: Tokenization can reduce the costs associated with intermediaries like real estate agents, lenders, and title companies.
  • Digital tokens: A digital token represents a share of the property, and comes with rights and responsibilities.
  • Smart contracts: These computer programs automatically execute transactions, like transferring ownership when a share is sold.
  • Blockchain technology: This secure system provides an extra layer of transparency and keeps track of everything.
  • Types of tokens
  • Non-fungible tokens (NFTs) are useful when a property is considered as a whole, while fungible tokens are useful for fractionalizing a property into parts.
  • Risks
  • While tokenization offers many benefits, it's not without risks, such as legal uncertainty and the need to make sure smart contracts are safe.

source

Benefits of Real Estate Tokenization: Why People Are Motivated to Invest in Tokenized Real Estate

  • In the realm of real estate investment, traditional barriers are dismantled through the power of real estate tokenization. This transformative approach offers a range of advantages that redefine property ownership and investment strategies. - Сommercial real estate tokenization emerges as a gateway to a new era, one defined by accessibility, flexibility, and efficiency.
  • Fractional ownership: diversify with ease
    Conventional real estate investment demanded substantial capital, limiting participation. Tokenization revolutionizes this by enabling investors to engage with smaller amounts while diversifying across multiple properties. This opens doors for a broader spectrum of investors to explore and expand their portfolios.
  • Liquidity revolution: a new era in trading
    Real estate’s historical illiquidity undergoes a transformation with tokenization. Property tokens can now be bought, sold, or traded on digital marketplaces, ushering in a level of liquidity previously unparalleled in real estate transactions. This newfound flexibility empowers investors to navigate the market with agility. source
  • Global accessibility: unveiling borderless opportunities
    Tokenized real estate transcends geographical constraints, granting access to investment opportunities once limited by location. Investors from diverse corners of the world can now participate in markets that were previously out of reach. The global platform created by tokenization fosters new dimensions of investment diversity. source
  • Transparency: blockchain’s assurance
    Blockchain’s inherent transparency becomes a cornerstone of tokenized real estate. Every transaction and ownership change is immutably recorded, offering an indelible audit trail. This enhances transparency, reduces the potential for fraud, and instills confidence in investors. source
  • Cost efficiency: economic advantages
    Tokenization introduces significant cost advantages compared to traditional real estate transactions. Smart contract development and blockchain transaction fees are the primary expenses, making tokenization a cost-effective alternative. Moreover, reduced reliance on intermediaries lowers costs, while smaller investment amounts mitigate the impact of high transaction fees.

source

IMG_6737.jpeg

An example of how this works.

  • Imagine a property owner with a $100,000 property urgently needing funds.
  • However, interested investors lack the necessary capital, and selling at a lower value isn’t an option.
  • Tokenization offers a way out.
  • The property’s value is divided into $1,000 digital tokens, hosted on a decentralized blockchain network.
  • Investors can now buy these tokens gradually, starting from $1,000.
  • This opens real estate investment to a wider range of investors.
  • For owners, tokenization provides funds without devaluing assets. Investors can invest in smaller amounts. Transparency is ensured by the blockchain.
  • This case illustrates how tokenization bridges financial gaps, making real estate investment more accessible and flexible for all parties involved. source

Success Stories

Tokenizing the St. Regis Aspen Colorado, USA resort.

In 2018, the St. Regis Aspen Resort underwent a groundbreaking transformation through tokenization, orchestrated by Elevated Returns (founded in 2017), a prominent New York investment firm. This pioneering endeavor encompassed the issuance of 100,000 Aspen Coin tokens, meticulously structured to represent precise 0.01% ownership stakes in the esteemed resort. Offered at a nominal cost of $1 per token, the initiative garnered substantial attention, ultimately amassing a noteworthy sum of $1 million in capital. The tokens found their avenue of trade through the Templum Markets exchange, marking a significant milestone in the evolution of real estate investment. source

Sapporo City Hotel, Sapporo City, Japan

  • Tokenization of Sapporo city hotel
  • Japanese firm Kenedix unveiled its latest endeavor in the form of digital security tokens.
  • This initiative marked the fifth instance of Kenedix harnessing this transformative technology, with the underlying asset being a hotel situated in the bustling city of Sapporo.
  • The collective funds raised through this innovative approach across these five properties amount to a substantial Yen 33 billion ($240 million).
  • Foreseeing a burgeoning trajectory, Kenedix envisions the real estate security token market’s value soaring to an impressive Yen 2.5 trillion ($18 billion) by the year 2030.
    source

Why Tokenize Hawaiian Real Estate

Why Hawaii is considered by many to be a perfect place to invest in real estate.

  • Real Estate assets in Hawaii enjoy consistent high demand and real estate values have consistently risen every year.
  • Hawaii is a top vacation destination for both America, Europe, Asia and the Middle East.
  • Honolulu, Hawaii has the 3rd most expensive real estate prices in the United States, compared to San Francisco and New York City.
  • Therefore it is an idea place for a company, which provides real estate investments as percentages of ownership.

Tokenization is a global vehicle for trading shares of real world assets.

  • Additionally, the BIDL FUND, created by multi-trillion dollar asset manager Blackrock has shown the world that tokenization real estate into $1000.00 to $1,000,000.00 investments sold on global cryptocurrency markets to white listed or otherwise qualified investors provides a global market and hugely successful investment funds.
  • Blackrocks BIDL FUND, a tokenized investment fund which owns US Treasuries reached 100 million USD in 3 months. And it may become one of Blackrocks most successful ETFs ever.

IMG_6727.jpeg

0
0
0.000