Scalable tokenization is finally here and it will impact blockchain immensely. Jointer, a leader in commercial real estate and located in Silicon Valley, CA and Tel Aviv, Israel, is now offering free tokenization through their platform.
It is becoming clear why their $1.5 Billion bid was silenced by the traditional powers, they are truly disrupting the old and large industry. Jointer’s foundation is laid by Jude Regev, famous for three successful exits and blockchain thought leadership, Lior Gal famous for eighteen years of executive experience in IT and Kyle White is known for being an ex-Trulian with 6 years of real estate and blockchain marketing experience.
It has a group of esteemed advisors including Winners of Nobel Prizes, the ex-Chairman of SEC, the ex-Vice Chairman of NASDAQ, the ex-Chief Economist of the U.S. Department of state, the Yahoo CFO and Visa Founder. Jointer’s leadership team is not short on credentials. They seem positioned to be the next decacorn.
What exactly is Tokenization?
With the help of tokenization, owners are allowed to sell fractions of income streams or equity to investors on the blockchain. Owners then receive the needed capital for the asset. These tokens are classified as securities which presents limited investor availability and heavily regulation putting owners at an immense risk for breaking the law.
Jointer helps in removing the current barriers by initiating a full cycle tokenization solution. Furthermore, Jointer allows the public to purchase tokens increasing the access to this lucrative asset class. Once Jointer’s reserve is large, owners can simply submit their property to Jointer and receive capital instantly.
Jointer’s Tokenization Process:
- Jointer identifies lucrative properties (at the moment we are focusing on multifamily w/ 100+ units) using an AI and deep underwriting approval process.
- Jointer purchases some of the free equity from those properties but keeps the current sponsor in place.
- At the same time, Jointer issues digital debt notes (via security tokens) to borrow funds from lenders
- Lenders receive cross-collateral from all the income streams of all the properties (including the equities themselves) and Jointer as a company
- At any time, lenders can redeem their token and liquidate the note.
How can they offer tokenization for free?
Jointer’s scalable business plan allows them to tokenize the entire industry. The unlimited scalability is only accomplished by issuing of the venture debt tokens which are pegged to national commercial real estate performance, backed by cross-collateral.
The company builds profits by splitting returns equally to investors. This model helps & allows Jointer to offer free end-to-end tokenization services to owners, which attracts lucrative buildings to the blockchain.
Should we care?
- As per today’s scenario companies are made to purchase the property before having tokenization done. Furthermore, each time investors trade the tokenized assets, they need to perform due diligence which is costly. This is not scalable nor is it easy enough to attract mass adoption. Jointer finally provides scalable tokenization which fulfills closer Satoshi’s mission for a decentralized future.
- Under Jointer’s new model for tokenization, an unlimited number of property owners can submit their properties to unlock capital, and if the reserve has funds, the process starts instantly.
- Jointer’s brilliant scalable approach helps not only position them for decacorn funding, it brings lucrative properties to tokenize on Ethereum, increasing the blockchain market helping us all in a better way.
Curious to see what scalable tokenization looks like? I gathered my information from Jointer.io