OpenLTV has announced an upcoming Security Token Offering (STO), which is scheduled to commence in the summer of 2019. The offering will feature tokenized real estate debt powered by the Ethereum blockchain.
OpenLTV’s Security Token Offering (STO) of Tokenized Debt Explained
Security token industry thought leader Jesus Rodriguez has made a strong case for tokenized debt as one of the best early applications for the nascent industry.
Boston-based OpenLTV apparently follows the same line of thought, given their upcoming STO featuring tokenized real estate debt.
The offering will be available to US-based accredited investors under the SEC’s Reg D 506(b) and to investors based out of other countries through Reg S.
Following a recently announced partnership with Paxos, investors will be able to invest with either fiat or cryptocurrency.
According to OpenLTV CEO Kirill Bensonoff,
“We are thrilled to be partnering with the Paxos team to bring a long-standing and secure investment option in the real estate industry to the financial future.”
Per the OpenLTV team, the Loan To Value will be 75% or less, with a Loan To Cost of 90% or less.
Qualified investors can expect to earn passive income through fractional debt secured by U.S. real estate. Returns on investment are said to be in the range of 8-12% annually.
Debt is just one real-world asset susceptible to the many benefits of security tokens.
The young industry has already witnessed the successful and compliant tokenization of equity, real estate, investment funds, and fine art.
What do you think of OpenLTV’s STO featuring tokenized debt? Will tokenized debt propel the industry forward, as proclaimed by Jesus Rodriguez? Let us know what you think in the comments section below.
Image courtesy of Cornell Real Estate Review.