The Securities Exchange and Commission of Thailand (SEC) holds a license for an asset-backed token offering service based on the Ethereum blockchain.
Fraction, a wholly-owned subsidiary of Hong Kong-based fintech company Fraction Group, has been licensed to list and trade tokens for fractional ownership of physical or digital assets, the company said on September 16. .
The license was granted through the official Thai SEC Portal for Initial Coin Offering (ICO) established in 2018. The license lays the groundwork for Fraction’s upcoming service for asset scanning and splitting, known as the Initial Coin Offering. fraction (ICO).
The company plans to list the first IFOs for subscriptions in the first quarter of 2022, focusing on tokens for properties in collaboration with local real estate companies. According to the announcement, Fraction is exploring an IFO with an aggregate value of over $ 460 million.
“Now you can legally own part of this villa – maybe 1% of it – rather than having to shell out $ 5 million to buy the whole thing,” said Fraction co-founder and CEO Eka. Nirapathpongporn. The minimum amount to participate in an IFO would be around $ 150, he added.
Fraction Co-Founder and CTO Shaun Sales said, “Although many are talking about it or trying to do it, our platform is complete, already up and running, and ready to list public assets.”
Related: Blockchain-based platform for fractional ownership launched in India
The tokenized property industry has remained relatively niche due to the burgeoning status of the technology and the regulatory uncertainty surrounding these offerings. According to estimates by the UK accounting network Moore Global, the tokenized real estate market could reach $ 1.4 trillion over the next five years if only 0.5% of the total global real estate market were tokenized.