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.
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.
'Hanse' refers to the Hanseatic League which was a large medieval network of originally German merchants and cities for barrier-free international trading and financial transaction.
The league came to dominate Baltic maritime trade for three centuries along the coasts of Northern Europe. Its impact on the development of trade, law, business customs and culture is visible across the region and felt through today. Its principles of protecting community, freedom of trade, property rights, reliability of contracts and mutual assurance are cornerstones of value creation.
Coming out of the Baltics we believe these principles are eternal. We made them part of our foundation. In consequence, the company logo depicts the H and C intertwined like the links of a chain, suggesting the interlocking, solid nature of blockchain when used to tokenise hard assets. A Blockchain Hanseatic network for our century.
Let’s talk about The Gap.
We believe there is a significant gap between two areas of capital raise. On the lower end, we have current small enterprise banking, friends and family investment, and crowdfunding which focus on capital raise typically under €1.5 million. On the high end, large scale project financing, investments by existing listed funds, wealth managers and exchange listings focus on capital raise above and beyond €10-15 million, the range being wider in high density, large population markets versus smaller population, fringe markets.
Many small to mid cap companies, especially in our region, lack development capital for projects between €1.5 to €15 million. The gap in Europe is poorly addressed by the stock-picking attitude and herd behaviour of venture capital. Smaller offerings are too expensive, volume constrained, and time consuming to raise, thus deferring projects and suppressing innovation therein; larger ones are equally time-consuming due to an oligopoly of takers or investors, high cost, documentation, and regulatory barriers becoming more and more bureaucratic in the wake of ever more specific, post oversight EU directives.
German Retail Equity - The Untapped and Underserved Giant
• German Bundesbank Q2 2019 reports that a trend to more capital market investment since 2014 has continued, however, …
• Germans continue to prefer liquid and daily available savings in bank deposits which they perceive as low risk. Thus, EUR 2.5 T or 40% of all savings are held with little to no yield.
• In Q1 2019 alone total savings increased by EUR 153 bn to EUR 6.17 T representing a EUR 74,000 per citizen
• With approx. EUR 30,000 held in low yielding deposits and EUR 28,000 in insurance savings the average German generates substantially lower yields of more than 3% compared to peers in Norway, England, Netherlands, 2% vs EU average, and nearly 5% than a U.S. saver
Let's get to work.
We believe the Gap can be closed by lifting restraints through market forces. This is achieved by providing direct, cost effective access to projects with real value and their developers. Digitised securities employing our usufruct structure allow tokenisation of hard assets by employing the benefits of the blockchain allows fragmented ownership or participations in future development gains, bringing fresh liquidity, market pricing, and momentum into an underserved segment. Making the tokenisation compliant with regulation and creating a new market segment ultimately allows blockchain innovations to match tokens with real assets.
This is what HanseCoin does. We have structured a viable tokenisation approach and are building the Asset Backed Tokenisation (ABT) platform to close this Gap. Our team knows and develops assets, and we understand financial markets and structuring. Blockchain is becoming a viable means to an end. In close collaboration with our regulated partners Börse Stuttgart and CoinMetro, we are building the software and infrastructure platform which allows Issuers to make their leap forward into the retail capital market starting in Germany and then branching out across Europe.
Regulated Tokenised Securities at low cost, liquid and easily tradable, asset backed, even at medium yields have a unique opportunity to tap into this cast pool, and not just in Germany. Credible projects from solid developers, priced at decent risk-reward ratios have to be issued through a credible conduit, such as Börse Stuttgart, so that retail investors can act directly or through their preferred house bank when acquiring a regulated security with an ISIN. The future of project finance is in retail capital markets.
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