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Goooood Morning, Rainmakers! ☀️

As always, we have two captivating topics for you to dive into:

1️⃣ 🍹 Tokenized Rum: Dictador and Warsaw Stock Exchange

2️⃣ 🇭🇰 Hong Kong Tokenized Real Estate: Taiji Capital on HKbitEx

Without further ado, it's time to…

Get Liquid 💧

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We provide early liquidity options, simplifying real estate investment. Our seasoned team, boasting 65 years of experience, pioneers innovative capital market solutions for the global real estate capital markets industry. Follow the RedSwan into the future of investment. The journey begins here.

🍹 Tokenized Rum: Dictador and Warsaw Stock Exchange

We’ve heard of tokenized whiskey, tokenized wine, and now we have tokenized rum!

Enter spirits company Dictador who’s leading the charge in the next tokenized alcohol, rum. Dictador will be working with the Capital Group of the Warsaw Stock Exchange to tokenize 60,000 liters of vintage rum (~100,000 bottles) at a valuation of €100 million.

How do you usually invest in alcohol? Why would you tokenize it?

Great questions! Traditionally you’d invest in barrels or casks from the manufacturer. As years go by, the alcohol matures and appreciates in value. What’s the problem? Well you’d have to store it somewhere, if you’re not an aficionado you’ll have to learn or hire someone that knows their spirits, and if you need to sell them quickly then you better know a buyer!

So tokenization allows you to invest while leaving the issuer, Dictador in this case, to figure out the logistics. As they sell the underlying asset, dividends would presumably be a lot easier to distribute to investors, and if you need to liquidate your position, you’ll be able to sell your tokens to a complete stranger on Warsaw’s tokenization platform (stranger to you, not the platform as they’d conduct KYC/AML).

There aren’t a great amount of details yet on this project but here are some interesting things to consider as Dictador claims they are “unconventional”:

• They’ll be creating collector editions of rum in collaboration with contemporary artists (Lalique and M-City)

• They’ve appointed an AI CEO

Dictador has also mentioned their 35-40 year-old rum collection is one of the rarest reserves in the world. It would help if all alcohol was on-chain to verify but for now investors will have to do their own due diligence on this.

Keep up with STM as we follow the news on this exciting use case!

Have you registered for our upcoming TokenizeThis conference? It’s FREE to attend! However if you’re an extra dedicated tokenizer, you may be interested in our VIP Pass which includes:

• Exclusive content and recordings from TokenizeThis conference

• Signed hard copy of Blockchain Explained written by the founders of STM

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So what are you waiting for? Get yours today!

🇭🇰 Hong Kong Tokenized Real Estate: Taiji Capital

A new player has entered the tokenized real estate market, Taiji Capital, and they’ll be raising $100 million HK through $PRINCE tokens to lower financing costs. They’re claiming they could reduce costs by at least 33%!

This will be done through a closed-ended fund managed by their subsidiary, Pioneer Asset Management, for 5 shops on Prince Edward Road West in Kowloon. Something interesting going on here: not only are they tokenizing real estate, but doing it on their own platform, HKbitEX.

As discussed in previous interviews with RedSwan CRE’s Ed Nwokedi, the tokenization of real estate allows for the removal of a lot of intermediaries per transaction such as investment banks, lawyers, and accountants. Now these assets can trade much like a stock would and at a fraction of the time!

Why tokenize over taking out a loan from a bank?

In our latest Insider Interview, Ed told us about changing interest rates and how they affect these real estate deals. As rates go up, property values go down meaning a sponsor needs to make up for that value in added capital for the bank to remain happy and not risk foreclosure.

Issuers tokenizing their real estate assets remove that risk by offering the opportunity to long-term investors for equity rather than debt. How can investors be additionally compensated? If the property value is lowered in this interest rate example, investors are coming in at a discount. Issuers can also choose to give them priority payouts.

For more on this topic, check out RedSwan’s interview here:

For Taiji Capital, this is an exciting time to be tokenizing Hong Kong real estate as tokenization continues to take off worldwide.

It seems like many of the arguments for tokenizing these assets in the US hold true for other parts of the world and we’ll keep track of them as well as new ones roll out.

💦 What else is Drippin’

Platform Spotlight and Crowdfund: DigiShares

The STA Success Network will be hosting a spotlight on DigiShares this Wednesday, September 20th at 10am EST.

DigiShares is a white-label tokenization platform that's now doing a RegCF crowdfund. Come learn all about them, what they do, future plans, and how you can get a piece of the pie!

Join us for an exciting deep dive on Wednesday at 10am EST!

If you’re interested in access to webinars like these, consider subscribing to the STA Insights plan for ONLY $9/month which also includes their email newsletter twice a week detailing what’s going on in the ecosystem, STA’s commentary on it, and any insights derived from our advisory and research arm.

State of Security Tokens 2023 - Q1 Extended Report

The Security Token Advisors State of Security Tokens 2023 - Q1 Extended report is brought to you by the Provenance Blockchain Foundation!

Our Head of Research and Institutional, Peter Gaffney, dives deep with updates from across the industry, from issuers to platforms to protocols. This piece will detail the macro trends taking shape within the tokenization space as a function of service providers like transfer agents, broker-dealers, alternative trading systems, custodians, and third-parties, as well as issuers, blockchain foundations, asset managers, investment banks, and activity that Security Token Advisors sees on its advisory side

Take a read for analysis on common themes emerging for both primary and secondary markets!

This is not financial or investment advice.

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Everything in this newsletter is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this newsletter should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.