• The Thai Securities and Exchange Commission has granted a license to an Ethereum-based real estate project

  • Thailand’s Securities Exchange and Commission has approved an asset-backed token offering service based on the Ethereum blockchain.

    Fraction, a wholly owned subsidiary of Hong Kong-based fintech firm Fraction Group, announced Thursday that it has received a license to list and trade tokens for fractional ownership of physical or digital assets.

    The license was granted through the Thai Securities and Exchange Commission’s official portal for initial coin offerings, which was established in 2018. The license lays the groundwork for Fraction’s upcoming asset digitization and fractionalization service, dubbed the initial fraction offering (IFO).

    In Q1 2022, the company plans to list the first IFOs for subscriptions, focusing on property tokens in collaboration with local real estate firms. Fraction is reportedly looking into an IFO worth more than $460 million, according to the announcement.

    Fraction co-founder and CEO Ekapak Nirapathpongporn explained, “Now you can legally own a part of this villa — maybe 1% of it — rather than having to pay $5 million to buy the whole thing.” He added that the minimum amount to participate in an IFO would be around $150.

    “While many have been talking about it or attempting to do it, our platform is complete, already up and running, and ready to list public assets,” Fraction co-founder and chief technology officer Shaun Sales said.

    Due to the nascent nature of the technology and regulatory uncertainty surrounding such offerings, the tokenized property industry has remained relatively small. According to Moore Global, a British accountancy firm, the tokenized real estate market could reach $1.4 trillion in the next five years if only 0.5 percent of the global property market is tokenized.

    What's your reaction?