The fund holds real estate trust deed positions, offering 14%-15% target yield for institutional investors.
Chintai is a blockchain focused on real-world assets (RWAs), regulated and licensed by the Monetary Authority of Singapore for dealing in capital markets products.
Asset manager Kin Capital is launching a $100 million tokenized real estate debt fund on the real world asset-centric network Chintai, the parties told CoinDesk exclusively.
The fund holds first performing real estate trust deeds, which are agreements between borrower and lender to have the property held in a neutral, independent third-party trust until the loan is paid off.
The initial offering is a $5 million tranche, with additional offerings planned through 2024 and early 2025. The fund is accessible to accredited investors with a minimum investment limit of $50,000. The projected return of the fund is 14%-15% annually with quarterly distributions to investors.
Fund tokenization is one of the frontiers of bringing traditional investment vehicles, also referred to as real-world assets (RWA), to blockchain rails in pursuit of greater efficiency, lower costs and instant, around-the-clock settlements. Reports by Boston Consulting Group and 21Shares forecast over $10 trillion of tokenized assets by the end of the decade in their optimistic scenarios, while McKinsey has predicted $2 trillion by then in its base case with broad-scale adoption still being far.
Chintai is a layer-1 blockchain for tokenized real-world assets, with its native token CHEX powering the network. Chintai Network Services Pte Ltd, the network's ecosystem development firm, is regulated and licensed by the Monetary Authority of Singapore (MAS) to act as a Capital Markets Services provider and a Recognized Market Operator for primary issuance and secondary market trading in digital securities, according to the project's white paper. The network's other business unit, Chintai Nexus, is based on the British Virgin Islands and deals in issuing non-security tokens. Kin Capital operates a blockchain-based marketplace for real-estate focused investment funds.
"This collaboration not only bridges the gap between traditional finance and blockchain innovation but also provides accredited investors with unique opportunities to achieve stable and attractive returns in a rapidly evolving digital landscape," said David Packham, CEO of Chintai.