The client
A real estate investment group opening its portfolio to institutional and, later, selected retail investors.
The challenge
Investing in the group’s properties meant stacks of paperwork, a chain of intermediaries and settlement that dragged on for weeks. Minimum tickets were high enough to exclude many qualified investors, and once money was committed investors had little insight into how each property was performing or how income was being calculated and paid.
The group wanted a way to offer fractional interests to outside capital without giving up control over who could invest, and to make income and performance visible in near real time.
What we built
We designed and delivered a tokenization platform in which every property is represented by its own class of security tokens. A token is a fractional share of that property together with its rights and obligations — including a pro-rata share of the income the property generates. Using ERC-1155 meant every building could have its own token ID under a single contract, sharing one compliance and marketplace layer while keeping each asset’s economics separate.
Investors complete KYC, receive a platform-created wallet, subscribe during the primary offering and can later trade with other approved investors in a private secondary market. Smart contracts take over the repetitive servicing work: income distribution, fee deductions and routine maintenance payouts.
Main features
- Property onboarding with document upload; files stored on IPFS and their hashes recorded on the ledger
- Security-token creation from the onboarded property data — one ERC-1155 token class per property
- Token valuation and listing in a primary marketplace
- Investor onboarding with KYC and compliance checks and an automatically provisioned wallet
- Private marketplace for primary subscriptions and secondary trades between eligible investors
- Automatic distribution of rental and other income in proportion to holdings
- Smart contracts for fees, maintenance payouts and other recurring transactions
- Investor and admin reports, transaction history and notifications
- Reconciliation jobs that keep IPFS, the off-chain database and the ledger in sync
Regulatory and compliance design
- Tokens structured as security tokens granting holders a share in the property’s profits
- Design mapped to Swiss securities law and FINMA requirements
- Pluggable KYC/AML module so a regulated provider can be connected without touching token logic
- Tax computation and reporting automated through smart contracts and the reporting module
- Contracts open to public verification; governance actions recorded on-chain
How success is measured
The platform tracks time to liquidity, secondary trading volume, transaction processing time, operating and administrative cost, and the number of compliance exceptions. Investors see property data, their transaction history and income payouts as they happen.
Technology stack
| Ledger | Hedera with its EVM-compatible smart contract service |
|---|---|
| Token standard | ERC-1155 security tokens — one token class per property |
| Smart contracts | Token rules, transfer restrictions, primary and secondary trades, income distribution and fees |
| Documents | IPFS with on-chain hash anchoring |
| Off-chain data | Database for property, investor and transaction records |
| Wallets | Platform-created investor wallets |
| Compliance | KYC/AML module with hooks for a regulated provider; checks enforced in contracts |
| Application | Web UI for investors and admins, reporting and notification services |
Client identity and commercially sensitive figures are withheld under confidentiality agreements. References can be arranged for qualified prospects under NDA.
