Deep Retail Liquidity.
HanseCoin enables Issuers in real estate development and shipping to bring retail liquidity to traditionally illiquid asset classes.
One of the first
We are one of the first platforms for asset backed tokens to be traded as regulated securities via key European stock exchanges. HanseCoin seeks to become a regulated AIFM (Alternative Investment Fund Manager) in Estonia in early 2020.
Blockchain facilitates Investment Access into Traditionally Illiquid Assets.
Tokenisation is Liquidity.
Blockchain reliability and efficiency boosts liquidity in historically illiquid markets such as real estate, shipping, plant machinery and equipment leases’
Why Tallinn? Digitisation and economic growth rates of Tallinn and Estonia are supercharged by the country’s well earned reputation as one of the world’s most advanced digital nations, fuelled by swift and efficient regulation, a solid digital cadaster, digital signatures and validation technologies, and e-Residency.
Underlying asset value, project capital gain, and yield potential encourages Participants to hold their digital certificates, tokens, or better 'digital securities' instead of taking short term trading profits, thus reducing volatility and removing the often quoted high token velocity problem.
e-Residency enables individuals and companies to securely transact business with no geographical boundaries.
Our Issuer’s real estate asset backed tokens are structured to become digital securities in form of a German Genussschein, with underlying usufructs for each project, we are matching old school securities law from 1888 with 21st century Blockchain tech, fragmentation capacity and thus allow cost efficient project asset tokenisation.
By removing middle men, streamlining the modular issuance process issuers and participants alike benefit from low cost project securitisation, transferability and tradability on established large stock exchanges. Participants stand to profit from yields and capital gains generated by the Issuer’s projects while the value of the underlying asset provides a hedge against the volatility of markets and quantitative easing by pegging the certificate/token/security to the value of the tangible asset.
Black swan proof: Even if financial markets were to implode, fall into deep recession or regulatory burdens for retail securities were to become too onerous, the foundation of the individual project with its usufruct remains so that Participants still have access to a solid underlying tangible asset development in property, shipping or industrial plant machinery and equipment.
Our unique software solution integrates existing German securities law and capitalises on Estonian software prowess and effectively uses relevant Blockchain technology.
More to come
Several groundbreaking projects in the pipeline in Germany, Austria, Poland, Spain, Romania and Estonia. We are expanding across Europe and soon beyond.
What is HanseCoin?
HanseCoin is one of the world’s first project tokenisation solutions resulting in its certificates becoming regulated securities backed by hard assets, or what will come to be known as an ABT (asset backed token) or ABSC (asset backed security certificate).
The ABT is the logical next step in the evolution of blockchain enabled tokenisation in terms of capital allocation. The reliability of blockchain technology enables effective fractional ownership of the fruits of an asset via a highly efficient distribution of value while greatly enhancing liquidity in what has traditionally been a fairly illiquid market. Multiple investors will be able to own a piece of the capital gain potential and yield of real estate, a ship, a satellite, an industrial plant or an entire mixed commercial or apartment complex. Blockchain 3.0 provides a solid foundation where a far more efficiently raised capital employs any solid sponsor led and bankable project financing with contractors, builders, architects, project bank syndicate, interior designers, attorneys, accountants, property appraisers, and experienced realtors and sales agents all work together e.g. to develop land into liveable homes and apartment complexes.
A use case or initial test project of one Issuer comprises of 6.6 hectares of land with space for 214 apartments across up to 28 houses including a decent site kindergarten and nursery, just 15 minutes from Tallinn’s city center, and has been permitted with buildings designs and projects approved and relevant infrastructure already built. The next step is construction; the land is thus “shovel ready” to be developed.
A capital raise of up to EUR 6.6 million of construction capital to complement senior debt will be conducted via an EFSA and BaFin regulated security issuance launched through a German stock exchange in order to cater to German retail private equity. The Issuer will employ HanseCoin’s AIFM (Alternative Investment Fund Manager).
On a micro level, the real estate development project carries a rather low risk given the history of otherwise equivalent, yet in terms of quality, design and attractiveness inferior real estate projects launched in the neighbourhood which still sold out ahead of schedule. Indeed, the demographics of families in formation together with Estonia leading the EU in economic growth is a powerful combination contributing to the breakneck speeds of development in Tallinn.
Outside the previous blockchain hype, what remains when the fog lifts? Shovel ready land that is being transformed into residential property. Even if financial markets were to implode, fall into deep recession or regulatory burdens for retail securities were to become too onerous, the foundation of the individual project with its usufruct remains. All participants still own their tokenized part of the fruits of the underlying project, they shall enjoy part of the capital gain of their property, and receive their yield when generated.
From here, additional projects are being onboard thus the whole software and issuance platform is significantly scalable and the tokenization approach is suitable for white labeling by large Issuers including regional banks and large developers. This has deep implications for initial participants who will benefit from various bonuses along the way including first mover access to future projects.
Ultimately, fractional ownership of rights to yields in real estate alone is an untapped multi-billion capital market. Subject to applicable regulation, fractional ownership should enable a real estate owner to split up their home or property investment and sell off incremental equity stakes. The real estate equity can then be freely traded until, one day, when the property is sold, the owner and equity investor can both enjoy any gain in the property’s value.
That said, our asset backed tokenization platform does not end with real estate. Other hard assets will also be tokenized. A series of such projects await in the queue.