DigitalX has signed a binding strategic partnership agreement with property tech company Bricklet to lower barriers to home ownership by launching a tokenised, blockchain-supported investment fund.

Bricklet’s innovative, blockchain-supported Homeowner Equity Share programs seeks to enable buyers who are unable to save the standard 20% home deposit – but who have the income to service their loan – to purchase residential property as an owner-occupier.

DigitalX Limited (ASX:DCC) will help accelerate commercialisation of this by providing equity funding directly, indirectly or through a dedicated investment vehicle.

The latter refers to a new investment fund – the DigitalX Real World Asset Tokenisation (RWAT) Fund – the company intends to launch to manage the tokenised, blockchain-supported equity investments in the properties and ultimately other assets.

Under the program, eligible buyers will pay a small deposit to set up the transaction with equity funding sourced by DigitalX filling the “deposit gap” required to purchase the property while the first ranking mortgage home loan will be provided by Bricklet partner AMP Bank.

Equity funders that provided the deposit gap will be entitled to receive a monthly income stream of ‘rent’ on its investment in each property, as well as the proportional capital return upon the sale of the property by the homeowner.

“DigitalX is excited to work with Bricklet to further the cause of housing affordability for all Australians,” chief executive officer Lisa Wade said.

“We believe our Real World Asset Tokenisation Fund can solve real world problems whilst at the same time achieve quality and sustainable investor returns.

“We see partnering with Digital asset firms such as Bricklet the perfect way to bring our real world asset token fund to life.”

Agreement details

As part of the agreement, DigitalX will initially seek to secure funding of up to $5m for proposed property investments which it chooses to participate in.

It will also contribute up to $500,000 of balance sheet funds into Bricklet’s property deals as seed capital until the RWAT Fund is established.

Bricklet will co-fund transactions alongside DigitalX’s balance sheet investments, with future equity funding to be sourced by investors investing via the RWAT Fund or via introduction to Bricklet.

The RWAT Fund will have multiple pools of real-world asset tokens, each of which is a digital representation of the investment characteristics of a real-world asset.

They allow for instant settlements and fractional ownership of assets. In this instance, tokens in the Bricklet pool are backed by shared ownership in a particular property.

RWAT will also invest in a diversified range of digital assets across other traditional asset classes.

DigitalX will also generate revenue through management fees based on the assets under management as well as commission and settlement fees.

 

 

 

This article was developed in collaboration with DigitalX, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Read MoreProperty

Featured Companies

You might be interested in