The Stock Exchange and the Thai Commission have been authorized to offer backed tokens based on the Ethereum blockchain.
The company announced Thursday that Fraction, a wholly owned subsidiary of Hong Kong-based fintech Group, has obtained a license to host and exchange partial ownership tokens for physical or digital assets.
The license was granted through the Thai SEC’s official IPO portal, which was set up in 2018. The license lays the foundation for Fraction’s future business digitization and segmentation service, called Initial Share Offering (IFO).
The company plans to jointly host the first IFOs in the first quarter of 2022, focusing on real estate tokens in association with local real estate firms. According to the announcement, Fraction is looking into the possibility of creating an IFO with a total value of more than $460 million.
“You can now legally own a portion of this villa – maybe 1% – instead of paying $5 million to buy the whole thing,” said Fraction co-founder and CEO Ekapak Nyrapatpongporn. He added that the minimum participation in the IFO will be around $150.
“While many have talked about it or have tried to do so, our platform is up and running and ready to host publicly available assets,” said Sean Sales, Faction founder and chief technology officer.
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The real estate token industry remains a relatively niche due to the emerging state of technology and the uncertainty over the regulatory requirements for such offerings. British accounting network Moore Global estimates that the tokenized real estate market could reach $1.4 trillion over the next five years if just 0.5% of the total global real estate market is tokenized.