After CPROP’s successful ProBit Exchange debut, the company has unveiled its design for a regulated exchange specifically designed for commercial real estate-backed digital asset securities.
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CPROP’s Co-Founder, Sandy Selman, summarizes the exchange’s core value proposition, “Three key components – an exchange platform, tokenization, and smart contracts – make mass ownership and instant tradability of fractional ownership of commercial real estate possible. The exchange can provide an easy way for retail investors to enter the commercial real estate (CRE) market with low minimum investment requirements. For institutional investors, the advantage lies in the liquidity such an exchange can deliver, particularly in view of the fact that most CRE is held in private, non-listed vehicles. Asset owners and managers can benefit by gaining access to a much larger pool of potential investors.”
Disruptive or Evolutionary?
Although digital securities can initially appear to be disruptive to the traditional securities market, it is actually more evolutionary. The move from legacy non-listed securities to exchange-traded digital securities does not change the outcome of the transaction, only how easily it is executed and managed. “In essence, digital securities are merely a format update to a massive, long-established, but traditionally inefficient segment of the regulated securities market,” Selman clarifies.
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Regulatory Signals Are Favorable
Regulatory activity in most parts of the world continues to move in favor of digital asset security exchanges. A few recent developments, such as successful SEC registrations of alternative trading systems and multi-million dollar digital securities transactions, highlight the progress being made in the sector.
CPROP is currently working with multiple national governments to identify where legislation has progressed to allow exchange trading of digital asset securities. In the interim, the company is building a global stakeholder consortium consisting of asset managers, institutional investors and property management firms.
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