Yesterday, we announced Connex Coin — our first security token sale for the real estate industry. During EXPO REAL, a large real estate fair, we will present Connex Coin and how we leverage blockchain technology to make payment and transaction processes within real estate mire efficient.
The story of Connex Coin began in 2018. Then, we discussed some digitization projects in the field of real estate funds with Thomas Meyer, founder and CEO of Wertgrund Immobilien AG, a residential real estate fund manager. Shortly afterwards, we started a similar conversation with Hans Hammer, founder and CEO of Hammer AG, a commercial real estate developer. It became clear within weeks: we should have these conversations together.
Fast forward: in July, 2019, we founded our new company RAAY Real Estate, or RAAY RE, or RRE, as a joint venture of Hammer, Wertgrund and Datarella. The purpose of RRE is to offer blockchain-based products and solutions to the real estate industry, which itself is a late adopter regarding digitization. We decided to start RRE with the tokenization of a Hammer-owned property, located in Munich. With the Connex building, we have a first class property in one of the best real estate locations in Europe, with first class tenants — in short: the best product you can imagine. By tokenizing this property, we provide the perfect investment opportunity — especially for retail investors — since investments start with the amount of 5 EUR per transaction.
We start selling Connex Coin at EXPO REAL, on 7 October 2019. The token sale will end in mid December. Connex Coin owners will receive an interest on their investments and can sell Connex Coin back to the issuer. In the first phase, there will be no public trading of Connex Coin, since at the moment there are noc EU-compliant cryptocurrency exchanges that offer trading of security tokens. However, Connex Coin will be one of the first security tokens that can be traded on exchanges in early 2020.
We have already been approached by first real estate players and we will certainly offer tokenization as a service startung early 2020. However, tokenization won’t be the only service: we are already woeking in a variety of tools and products that can be used by real estate developers, owners and funds, ranging from KYC Onboarding processes, to smart digital wallets.
Teaming up with Hans Hammer and Thomas Meyer is a great opportunity for us, not only to demonstrate the benefits of blockchain technology to a wider audience and to prove the power of our RAAY Digital Operating System, but also to work with two outstanding entrepreneurs and their higly motivated teams. Looking forward to a great future for RAAY RE!