Tokenized real estate securities on a DLT market
OpenBrick
Regulated end-to-end digital platform that facilitates the issuance, management and trading of tokenized securities within an EU-licensed DLT market infrastructure.
Context
Issuance, trading and settlement of tokenized securities backed by real estate projects within an EU-licensed DLT market infrastructure, combining real-time registry management with primary and secondary market operations and DvP settlement through digital money. OpenBrick needed a technology solution that would allow it to overcome the main challenges of the Real Estate industry: Financing Constraints and Investor Access Barriers.
Due to the macroeconomic context, real estate entities are finding it increasingly difficult to secure financing. Traditional financing avenues are either too costly or completely inaccessible, putting a strain on the sector's growth and innovation capabilities.
The high entry barriers in the real estate industry, underscored by hefty capital requirements, prevent a large segment of potential investors from participating in the market. This not only stifles market growth but also limits the democratization of wealth creation through real estate investment.
The financial markets exhibit significant inefficiencies, particularly in the realm of private real estate investment. Operational and regulatory-led costs are exorbitantly high, and the offerings in private markets are severely limited, deterring investment and innovation.
Although technology has permeated many industries, the real estate sector has seen few tech-enabled investment options. The existing solutions are often small-scale, unscalable, or unregulated, failing to instill confidence or meet the growing demands of modern investors.
Asseto enabled the end-to-end tokenization and lifecycle management of real estate securities
A gateway to unlock Real Estate sector: Asseto powers this innovative platform, making it accessible to a broad spectrum of issuers and investors, effectively lowering entry barriers and democratizing real estate investment. Built on Asseto, Openbrick emerges as a transformative solution to the aforementioned challenges, a regulated, cutting-edge digital securities platform that facilitates the issuance, management, and trading of high-quality real estate assets in both primary and secondary markets.
Market Participants
Asseto accounts for the diverse market participants involved in the process, delineating their responsibilities in accordance with EU regulations. The participants encompassed within this ecosystem include issuers, brokers (representing investors), direct investors, and the market operator, who is entrusted with the market's management.
Regulatory Compliance
ioBuilders encountered a significant challenge in ensuring compliance with the Markets in Financial Instruments Directive (MiFID) to establish a Multilateral Trading Facility (MTF) during the development of the project. Adherence to these regulations was instrumental in Openbrick's selection by the CNMV (Spanish regulator) for collaboration within the Spanish Sandbox framework.
Built on Asseto Markets Platform
Leverages Asseto, ioBuilders' end-to-end platform that provides the technology to operate digital financial markets.
Back Office & Configuration
The Openbrick back office furnishes a robust interface for various actors to interact with the platform. The platform is engineered for seamless setup and configuration, accommodating a wide range of functionalities including custody, payments, reporting, market opening times, currency selection, and more.
Asset Servicing
ioBuilders engineered a solution that empowers Openbrick to issue and manage the life cycle of different types of securities for the Real Estate sector, represented on Distributed Ledger Technology (DLT), with full lifecycle management ensuring accurate tracking of entitlements and accounts.
Digital Securities Lifecycle & Smart Contracts
The processes integrated into the solution span the creation of different types of digital securities, their issuance and primary market introduction, the trading of these securities on the secondary market (compliant with regulations to be recognized as a Multilateral Trading Facility), and the execution of various corporate actions such as coupon payments, dividend distributions, and amortizations. Openbrick's operations are underpinned by an array of customized smart contracts designed and implemented by ioBuilders, achieving enhanced efficiency and security through automation.
Secondary Market
Regulated secondary market that enhances liquidity and new capital pools, with lower minimum investment limits.
A production-ready platform
Not a solution you have to build.
