DAI, one of the most popular stablecoins on Ethereum, is finally breaking into the security token market. FACTOR-805 will be the first real-world asset to be tokenized with dividends paid in both DAI or fiat.
It’s commonly been said that the security token sector will first impact the real estate space. After all, we’ve had security tokens represent real estate assets before. Securitize, for example, has been focused on tokenizing some $1 billion of real estate assets; other companies, like QuantmRE are looking to create their own security tokens tied to fractionalized interest in real estate.
FACTOR-805 is the next real estate-based security token to be announced. What makes it unique, however, is that it will support distributions paid in DAI or fiat, an industry first.
According to Rune Christensen, CEO and co-founder of MakerDAO, FACTOR-805 is a “breakthrough.”
“It’s a powerful example of how to unlock more value from investments by bringing real world assets to the blockchain. With Dai, investors get the speed, security and efficiency of a cryptocurrency without the volatility that typically defines the space.”
All of that sounds promising, but what is FACTOR-805?
The FACTOR-805 security token will be based on real estate assets in Brooklyn.
- Investors of FACTOR-805 will receive tokens tied to a 37-unit residential condominium building on 805 Washington Avenue in Brooklyn, NY.
- Investors can receive payouts in either DAI or fiat.
- Currently, the token will produce a 13.24% yield with expected maturity.
- Monthly payouts.
- The central location, high demand, and moderate unit sales prices will make the investment viable long-term.
FACTOR-805 is created by Fluidity Factora, a company dedicated to upgrading financial infrastructure by linking real-world assets with blockchain technology.
What do you think of FACTOR-805? Should real estate assets be tokenized? Why or why not? Let us know your thoughts in the comments.
Image courtesy of Medium.