US firm launches real estate tokenised asset funds

June 22, 2018
Chris Wheal

TN Coin, a Nashville, Tennessee -based real estate investment platform, is launching one of the first real estate tokenised asset funds in the US and will use the Stellar consensus protocol to distribute tokenised shares to investors.

Downtown Nashville

TNCoin’s first acquisition is likely to be a Nashville property: Shutterstock

“TNCoin is a move in the positive direction for cryptocurrencies by providing more stable, securitised options,” said fund manager Luis del Mazo, Jr. “Although initially this offering is only for accredited investors in the US, in the future we would like to offer a Regulation A plus to open up to all levels of investors.”

Tokenised assets

TNCoin describes the offering as “a valuable opportunity for individuals wanting to capitalise on this unique real estate-backed investment” and aims to raise between $5 million and $50 million from accredited and foreign investors. It is currently is offering a 30% bonus Tokens for the first $10 million in capital raised. Investors will be available to sell tokens on the decentralised exchange 90 days after the soft cap goal.

A key component of the offering is to provide investors with a tokenised asset that can be stored and exchanged at a future date. TNCoin is distinctive because “it is one of the first securitised real estate investment funds to offer liquidable security tokens.” The fund will acquire real estate assets either to rent, hold, renovate and sell while distributing dividends to token holders. TNCoin is considering as its first acquisition a multi-family housing facility in Nashville.

“If we can negotiate a better price then TNCoin will initially be backed by this 68-unit apartment building generating $1.3 million in revenue a year, secured by corporate rental agreements,” said del Mazo. “The steady rate of return through rents and appreciation will help cryptocurrency investors stabilise their volatile portfolios.”

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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