Thai SEC issues license to Ethereum-based real estate project

Securities Exchange and Commission of Thailand (SEC), have a license for an asset-backed token offer service that is based on Ethereum blockchain.

Fraction, a Hong Kong-based fintech company, has been granted a license that allows it to trade tokens and list physical or digital assets. The firm announced September 16th.

The license was granted by the Thai SEC’s official portal to initial coin offerings (ICO), established in 2018. This license lays the foundation for Fraction’s upcoming service to asset digitization, fractionalization, also known as an initial fraction offer (ICO).

The company expects to list its first IFOs for subscriptions by Q1 2022. It will be focusing on tokens that are used for property in partnership with local real-estate firms. Fraction announced that it is looking into an IFO with an overall value of over $460 million.

Eka Nirapathpongporn, Fraction’s co-founder and CEO, said that you could legally own a portion of the villa. He said that the minimum amount required to be a part of an IFO is $150.

Shaun Sales, Fraction’s co-founder and chief technology officers, stated that “While many have been trying to do it or talking about it, our platform has been completed, is already up and running and ready for public assets to be listed.”

Similar: India launches a blockchain-based platform to fractionally own property

Due to the technology’s infancy and regulatory uncertainty, tokenized property is still a niche industry. Moore Global in Britain estimates that the tokenized real property market could reach $1.4 trillion within five years, if only 0.5% of the global property market was to be tokenized.

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