The amount of the bonds amounts to 280 million dollars
El Fundament Group It has received a green light from the German Federal Financial Supervision Authority (BaFin) for the issuance of tokenized real estate bonds.
Under its regulation, the token offering will be open to any retail investor anywhere without minimum investment restrictions.
For example, a Peruvian can buy tokens worth US $ 100 and indirectly invest in German commercial properties.
In this regard, the BaFin told Coindesk that «We can confirm that we grant the approval of a prospectus of the Fundament Group. In fact, it has been the first time we have approved a prospectus on real estate bonds based on blockchain, but not the first time regarding blockchain technology as such.
The token, which Fundament will begin marketing next month, will be executed in the public Ethereum blockchain using the ERC-20 standard.
The bonds would be backed by five separate construction projects, three in Hamburg, one in Frankfurt and one in the university city of Jena. The portfolio, which includes residential, commercial and hotel properties, would amount to more than 680.000 square feet once the work is finished.
Investors can buy their tokens with bitcoin, ether, US dollars or euros. For those who pay with fiat, Fundament says it will deliver the tokens on a hardware device.