8 Must-Know Facts to Jumpstart Your Real Assets Tokenization Journey with InvestaX

Tokenize your assets on top of our infrastructure Our Tokenization SaaS platform is a software-as-a-service solution that enables the issuance, trading, and custody of security tokens for private market assets. We have been granted a Capital Markets Services and Recognized Market Operator licence by the Monetary Authority of Singapore to deal in and operate an […]

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8 Must-Know Facts to Jumpstart Your Real Assets Tokenization Journey with InvestaX
S. Alice Chen

S. Alice Chen

Ex-corporate real estate lawyer turned entrepreneur. Alice is the Co-Founder and COO of InvestaX. She has spent more than 10 years practicing corporate and real estate law across multiple jurisdictions (Los Angeles, Shanghai and Tokyo) with major international firms, including Skadden Arps and DLA Piper. Having been a corporate lawyer for many years, she is familiar with the inefficiencies and opaque processes that are present in private markets and recognize that whenever there is inefficiency there is a disruption opportunity. Excited by technology's impact on every aspect of life, and a believer in blockchain and building tech that creates a new, better and more inclusive investment universe.

Tokenize your assets on top of our infrastructure

Our Tokenization SaaS platform is a software-as-a-service solution that enables the issuance, trading, and custody of security tokens for private market assets. We have been granted a Capital Markets Services and Recognized Market Operator licence by the Monetary Authority of Singapore to deal in and operate an organised market for securities respectively. Our service offers a one-stop solution for all your security token needs, including seamless banking integration, thorough user verification with a KYC module, flexible OTC trading options, primary issuance services, cutting-edge blockchain technology, and smart contract deployment.

The Web3 landscape is a foreign territory to most companies and navigating it on their own is challenging as it is unfamiliar.

However, there is no denying that we’re heading to a Web3 future – one where tokenization plays a significant role in bridging and onboarding TradFi companies to the value of DeFi and which may even prove to be vital to their survival and success.

This is where InvestaX comes into the picture and aims to make its mark. In this article, we’ll take a look at  the Web3 solutions InvestaX offers to companies as a Singapore-based MAS-licensed platform for digital security tokens that focuses on private market investments.

About InvestaX in General

#1: What is real estate tokenization for InvestaX?

Tokenization of real estate creates unprecedented opportunities for more alternative asset classes to enjoy  increased flexibility in terms of minimum investment and improved liquidity. 

This can be attributed to one of the greatest potential benefits of tokenization, which is fractionalisation of interests that allow investments that traditionally had large upfront capital requirements to be readily divided across a wider pool of investors. 

InvestaX’s white-label solution allows real estate companies to launch or develop their own token projects by tapping into the knowledge of our team of tokenization experts and get access to ideas and services that will kickstart their digital asset journey of bringing their traditional assets online and on-chain. We bring  the required  technological expertise along with the necessary licenses.

#2: How does InvestaX’s real estate tokenization solution addresses the “ownership” of a property?

The property laws vary from jurisdiction to jurisdiction and will be assessed on a case-by-case basis.. 

Here some of the things that InvestaX can do in connection with property ownership:

  • InvestaX can assist in the set up of an investment vehicle in the form of SPVs,  which can act as issuer of tokens or as a fund pooling vehicle to hold the property and investments, depending on the objectives of the project.
  • The SPV will assume legal rights and obligations in respect of all of the investors, while InvestaX will help in managing such investment vehicle on the client’s behalf. 
  • The  project tokens will be issued via InvestaX’s proprietary technology that includes DLT and smart contracts for Security Tokens. The tokens can potentially represent equity/debt or economic and beneficial ownership interests in the issuer entity or direct ownership into the property, depending on the requirements.  

Different considerations will be taken into account depending on the type of token interest that’s ultimately issued, such as stamp duty, limitation on total number of investors, or restriction on transfers, if any.

In due course, InvestaX will work with a company’s appointed legal and tax consultants to consider how the investment vehicle can be structured in a way that is regulatory compliant while optimizing tax and other efficiencies that suit the client’s requirements. 

#3: What tokenization projects has InvestaX been involved in recently?

  • IXAPE – The project includes the tokenization of one of Bored Ape Yacht Club NFT into 10,000 security token.
  • HGT Token – The project includes the tokenization of the construction loan (a debt security) for a UK-based property developer.
  • Project Sunshine – The project involves advisory work related to the tokenization of corporate debt for one of the top listed property developers in Thailand.
  • Project JB – The project involves advisory and white-label services for a large private bank client  including  tokenization of a physical art piece..
  • Project eVCC – The project was done in coordination with the Monetary Authority of Singapore (MAS) to tokenize the Singapore Variable Capital Company structure in collaboration with UBS, State Street, PwC Singapore, and CMS law firm. 

#4: What licenses does InvestaX have that allow it to legally tokenize real-world assets and manage the trading of security tokens?

InvestaX holds a Capital Markets Services license from MAS that allows it to deal with securities, capital markets products and provide OTC (over-the-counter) trading of securities via its platform. 

InvestaX also holds an exempt financial advisory license that allows it to advise and provide consultancy services on the mentioned financial products, while its application for a Recognized Market Operator license is pending approval.

About the Tokens Issued via InvestaX

#5: What type of token is issued in InvestaX’s tokenization projects?

InvestaX issues security tokens which can represent different things depending on the project. For one, we can issue security tokens that represent equity or economic ownership interests in the entity holding the property. In other cases, we can also issue security tokens that represent direct ownership to a property, depending on what the client needs. 

#6: What jurisdiction governs the tokens issued by InvestaX’s tokenization project?

When it comes to jurisdiction, we must set a clear line between token issuance and token offering. As a technology provider, InvestaX can help companies issue tokens in any jurisdiction they desire because this is simply a process of issuing tokens using our technology. 

Meanwhile, if it’s about where the offering will take place, this will be decided by the issuer, taking into consideration the governing laws, the target investors, and overall objectives of the offering. 

InvestaX holds a Capital Markets Service License under the Singapore Securities and Futures Act 2001 and can help issuers conduct “offerings” in compliance with Singapore securities offerings rules for both onshore and offshore investment vehicles. You can launch global products for global investors on our platform based in Singapore.

#7: Where can you trade the tokens issued in the tokenization projects of InvestaX?

The tokens issued can eventually be traded on the InvestaX OTC platform and also on the platforms of our business partners such as IX Swap, OSL, Archax, Atlas One and many more to take advantage of global liquidity. 

#8: What currency can be used to buy and trade the issued tokens?

InvestaX accepts most major currencies but USD and SGD are the preferred transaction currencies since there will be no foreign currency exchange exposure. 

However, InvestaX currently does not accept cryptocurrencies directly but can refer investors to a digital payment token license holder in Singapore to exchange their cryptos with fiat. We will be adding cryptocurrencies as a form of payment only in the near future, but we won’t be selling any cryptocurrencies.

We at InvestaX offer a Tokenization SaaS platform, and have been granted Capital Markets Services and Recognized Market Operator licence by the Monetary Authority of Singapore to deal in and operate an organized market for securities respectively. Schedule an exploratory call with us today to learn more.

About InvestaX

Founded in 2015, InvestaX is the leading Tokenization SaaS platform, and has been granted a Capital Markets Services (CMS) and Recognized Market Operator (RMO) licence by the Monetary Authority of Singapore to deal in and operate an organised market for securities respectively.
An early pioneer in the use of blockchain technologies to develop leading technology-driven investment vehicles called security tokens, removing friction and delivering secondary market trading. To date, the company has listed more than 28 private equity offerings that are jointly valued at over US$1 billion and had 16 successful exits.

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Important Notice: “InvestaX.io is operated by IC SG Pte. Ltd. ( “InvestaX” or “IC SG”), a Singapore private limited company (Company Registration No. 201300459N). IC SG holds a Capital Markets Services license No. CMS100635 (“CMSL”) to deal in securities by the Monetary Authority of Singapore (the “Authority"), which allows IC SG to facilitate the primary offer and issuance of securities and act as an intermediary between issuers and investors. In addition, IC SG is licensed by the Authority as a recognised market operator to operate an organised market in respect of securities and units in collective investment schemes, the property of which consists only of capital markets products. (the “Organized Market”).The Organized Market allows investors to purchase securities from, and sell securities to other investors.

IC SG also holds a regulatory exemption under the Financial Advisers Act (Cap. 110) which allows it to provide advice on units in collective investment schemes (broadly, pooled investments, and is exempted by the Authority from complying with section 7(1) of the SFA in respect of operating an organised market for collective investment schemes, the property of which consists solely of non-capital markets products (the “Exempted Market”).

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