@@Interaxis My friends, accountant, family wants to learn about crypto after seeing what I have done for myself. I'm building a playlist for them from basic to intermediate. Your videos will be on the playlist. You are a great teacher.
Exactly! If you have access to the Internet usually have the same access information as everyone else does. The question is what are people spending their time on? People always complain about not having any currency (Not to be confused with money) but yet they are not helping themselves with the information that is out there to improve their situation.
Were so early! Imagine in five years from now and everything is on a block chain and we were the ones that invested in the infrastructure of the new financial system!
This is great, it helps connect the dots on how all of this will come together. I have been exploring some of this for my lending product and this talk helps set the direction of how RWAs will evolve in the future.
Superb explanation. The tokenization of real state/ invoices for goods and services, is now very much needed. Coincidentally, I would like to tokenize my Cacao farm in Venezuela. Any, international administrator platform interested on this proyect?
Hi @Julio Rosario, Very interesting. I have just filed for a patent in this very space. We would be interested in developing this project for you. Let me know if you are interested and we can connect.
That's a pretty broad concept, and our entire RU-vid Channel is really about that. We do have some projects working. One is a book, and the other is a video series to go along with a book, showing the journey from Bitcoin to DeFi.
@@Interaxis okay thank you really looking forward to that.. One more thing for the topic I mentioned what according to you should be the main points which should be there if one is making a ppt on it.. Would really help sir
Tokenization has existed for a long time, but never has it been more accessible and decentralized due to the existence of the widespread adoption and development of the public blockchain.
Sir ! , Thanks you so much I was looking for something and I had been watching videos and reading for 3 or 4 days and got the answer in your videos amazing 👌👌 crystal clear explanation , I am glad and greatful for your hardwork you shared ,
Thanks, Matt. I wish I could get to my Medium post from early 2019 talking about portfolios of tokenized assets, and the transparency, liquidity and collateralization
@@Interaxis 1. what cryptos/investments do u recommend? (#NotFinancialAdvice) realio? swarm market? ondo? ...? 2. I understand the importance for cybersecrutiy while dealing with RWA. If everything becomes tokenized the internet needs to become a much more secure place. (Now this is my personal take) I've been researching Internet Computer (ICP) and from what i can tell they are building the futur of internet: not just networks as known today, but the internet on the blockchain, making cybersecurtiy/ransomwear not a problem anymore. (there is way more to it, but i thought this was an interesting topic especially considering the need for cybersecurity with RWA on the internet of today) Have a great day
Awesome videos. One question, you mentioned that the liquidity tokens can be Ethereum Tokens. These tokens are speculative and traded for their own values irrespective of the real estate Inc. how can it capture the true value of the RE investment unless it’s a dedicated token for the business ?
How do you avoid/certify that the current owner doesnt sell the property the "traditional" way AFTER having tokenized the property? Who holds the title of the property once tokenized?
So essentially, supply and demand will only depend on what individuals are willing to pay? What about appraisers? Looks to me it will be “Buyer Beware!”
Basically shifting the Entire regular financial system into BlockChain-Finance system, I am wondering the future of regular financial institute how are they gonna be?
This explanation was beautifully executed. Thank you so much. Would love if you could explain what would be needed to create a company that does the actual tokenization of these assets. I’m assuming all you would need is to find blockchain programmers and have a really good legal team to be SEC compliant.
YES YES YES! So glad you got that. Technically, security tokens are NFTs - Non-Fungible Tokens. We have just seen the NFT meme get taken by art and collectibles, but an NFT is really any token that represents some real world asset.
Thanks a lot for uploading this vid! This is literally the base to what I've been trying to figure out and understand for the past four years! I have a direct question for you. At about 8min you're talking about 'Ron' being 'KYC Certified.' How can I find these legalities referring to who can buy these tokens and as thus resell them? I don't understand how come your average person, who is not KYC certified, can't buy like $20 worth of tokens and resell whenever for more or less than their initial investment.
Unless you would set a cap for the average person, but these type of investments usually requires a lot of funds so they are reserved for high certified net worth individuals. What this means is that if there is any loss the high net worth individual would not feel the loss compared to the person using all his $20 to invest.
Very inteesting, im just wonder how rhis contracts will be secured. Who gives me the garantee that if i buy the whole supply from a tokenized house, that the owner is not scamming by making anither token for the same house. (thats just one example on how easy the customers might get tricked). i think there is a need of security in crypto world when it comes to RWA because otherwise its too easy to trick the buyers.
Thank you for the comment. These smart contracts still need to match up with the current legal structures around real world assets, for now. Eventually the hope is that private investments, real estate, etc., use blockchain technology to denote ownership and transfer. Please don't conflate these smart contracts or tokens with the current tokens you see mostly in crypto. Smart contracts are programmable, so there can be ways to protect against having multiple tokens representing the same asset.
If you were an investor of this how might you expect the dividends to turn into cash that is deposited into your account. Ie. what would that process look like. It’s easy to say distribute dividends. But in what form? In tokens? In redeemable tokens? Cash deposit direct into bank accounts?
What do you mean that the investor could not transfer the ownership of the property easily on tradfi? The investor could sell the stock easily in the secondary market
Great explaination. Question for you. What about the transaction fees? Specifically GAS. It seems these fees are so high that this math may not work out as expected.
Actually really good to think about. Keep in mind that the tokens are just digital representations of your ownership in some asset. If we're talking real estate, there is still a company that has bank accounts, and is buying property. Those properties have revenue and expenses. If, for some reason, that company that yo've invested in goes bankrupt - can't pay its bills - they can sell the real estate, or go through some sort of restructure. As an owner it is no different than if any other company did the same. The custodian of the tokens is really a place to hold your digital representation. The tokens are created to allow for all the legalities to be encompassed in a format that allows for greater transparency and transfer. For many of these, you can custody on your own hardware or software wallet. If there is a digital asset custodian, they are probably also a transfer agent, which means they are providing a marketplace for you to sell the tokens, and have the legal and regulatory approval to transfer official ownership along with it. If that custodian goes bankrupt, you still have your tokens. They live on a public blockchain, and you can move them to another custodian, or to your own wallet. Of course, there hasn't been much in the way of actual case studies yet, so much of this is theoretical.
What happens if I lose the keys to my tokens? If they were tokenized shares, for example, these shares will not exist any more in practice, because they can't be accessed. What happens to the remaining tokens? They should increase in value now, because there are fewer tokens representing the same underlying asset. But they can't, because I can never prove I lost my keys. What if everybody loses their keys? Who owns the company then?
Hi David, we do get this question quite a bit in light of hacks, exploits, etc. It's important to note that we can write the smart contracts for these tokens in just about any way we want, of course conforming to the token standard. That means we can write in that if you lose access to your wallet, or you get hacked, we can burn the lost tokens and issue new ones. This isn't a completely decentralized process. The tokens just represent the assets, but they are not the assets. We will still have to fall back on laws that govern property to guide us, and the tokenization aspect just makes accounting for and settling the transactions more efficient.
@@Interaxis Thanks for answering! But if I lost my keys, how can I prove that I am the rightful owner? Would require KYC for everyone involved then I guess?
Many of the platforms have the ability to take on the process of checking the investors for accreditation status, taking the payments, and converting to tokens. We have another video on Security Token Issuers that might help. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-wMgik_lYb5o.html
We're not tax experts, but we believe the answer is yet. If I buy BTC, and trade it for ETH later, I am taxed on the dollar value of the gain in BTC over that time.
It is my understanding that as long as you are shifting from one asset to another without converting to fiat during the process, that you do not pay capital gains tax on that crypto-to-crypto shift. The problem is that many centralized exchanges do involved settling/converting to fiat in the backend, which makes the conversion a taxable event. I haven’t seen a lot on this, but to me that is one of the biggest implications of Visa starting to settle certain transactions in USDC; Now you could theoretically pay for something with a crypto back VISA card and only be paying the sales tax at the POS rather than capital gains.
I wonder if this could be worked to include a chain of investor groups in property investment on a smaller scale. Ex. buying a duplex or a townhouse to rent out. Tokenize a family home or condo to collec funds as a ownership group. I also wonder if it could be used on an individual level. Tokanize a house or save up money down for a house.
In the real estate example, when someone buys the tokens, does the money used to buy the tokens go to the real estate company? In a hedge fund example? Could the sale of the tokens be used to fund the fund? Ps: would love to have you on my podcast too to discuss this.
Does everyone have to be an accredited investor to invest in a companies tokens? Or is that just a requirement the company in your example has placed in their smart contract? …Just wondering if it’s required by the FCC or something.
Are you asking about the blockchain fees like gas, or overall fees? The quick answer is that it completely depends on the asset, and the reason you're tokenizing it. If you're looking to tokenize an investment, and distribute tokens to the investors, that can get expensive. You still have legal costs, plus the coding, etc. If you own something of value, like art or a car, and want to tokenize to sell parts of it, that can be much less expensive, since much of it can be done on-chain.
That's a good question. We don't think there is a "winner" here. There are several chains and protocols that fit for the tokenization of assets. Each issuer and project will just have the ability to choose the chain that best fits for its purposes. For example, a company issuing a Real Estate token may choose Tezos for certain longevity properties related to the fact that Tezos does not fork their code. However, a company that is issuing invoices might use Ethereum because of the access to more DeFi protocols. A company issuing debt may choose a permissioned chain like Provenance because they need access to the banking partners. The chain will be determined by the issuer based on properties, goals, benefits, and many other factors.
Good question. It can be a REIT, but just using the token to more efficiently track the ownership. The tokenization means that all the legal aspects can be encoded. So, in theory, you could then sell some or all of your tokens, which represent your ownership, in the REIT. The biggest issue with REIT's is the lack of liquidity. That is because of what a PITA it is to re-paper a new owner. If all that were taken care of programmatically, the official transfer happens on-chain through a transfer agent, then by REIT is now liquid. Liquidity also means it can be used as collateral, since I can pledge the tokens, and if I don't pay the loan back, the lender can take ownership of the tokens. Hope that helps.
@@Interaxis first of all, thanks for taking the time to reply. This does solve the issue of illiquidity in non traded REITs. I think I don’t understand the part about encoding of the legal aspects. I need to read more about this.
We have another video about the security token issuers that might help. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-wMgik_lYb5o.html We're also happy to explain it sometime if you want to contact us.
