Can Blockchain Give You A Piece of the Action in World’s Most Expensive Housing Market?

HONG KONG — Average investors may soon be able to get a piece of the world’s hottest property market.

One real estate giant is considering tapping into the world of blockchain for liquidity. It’s just an MoU at the moment, and certainly it is not unique; as many are exploring selling/investing in real estate with securitized token offerings (STOs). What is notable is the size of the portfolio: $7.8B USD. Here’s the announcement:

Real estate giant Stan Group’s strategic partner, GEAR Financial Group signed with Liquefy, an end-to-end security token issuance platform with blockchain technology, to jointly explore the business opportunities of real estate tokenization to use blockchain to tokenize properties in Hong Kong. Stan manages a $60B HKD ($7.8B USD) real estate portfolio.  

“We envision far better access and greater liquidity in the real estate market,” said Stan’s Chairman, Mr. Stan Tang.

Similar to a REIT in traditional equity markets, STOs can give investors the opportunity to buy a piece of real estate they might not otherwise be able to participate. Real estate tokens can represent ownership in the underlying asset, equity in a legal structure that owns the asset, an interest in debt secured by the real estate, or a stream of income based on cash flows from the asset, among others.

Hong Kong is the most expensive property market in the world.