RedSwan CRE Builds its Token Studio on Hedera for Real-World Asset Tokenization

RedSwan CRE Marketplace
3 min readMay 31, 2023
The HBAR Foundation and RedSwan CRE Marketplace

Today, we’re excited to announce that Red Swan CRE (RedSwan), the commercial real estate company with $5 billion in Assets Under Management (AUM), is launching its token studio on Hedera for Real-World Asset (RWA) tokenization.

Last year, Boston Consulting Group (BCG) predicted that $16 trillion in assets could be tokenized by 2030, with real estate being the largest asset class. BCG is just one of several firms like JP Morgan, Citi Bank, and Goldman Sachs that identify the rapid tokenization of industries like real estate, fund management, and art as key areas of growth.

Tokenization of real estate assets includes increased liquidity, fairer market prices, and a reduction in management fees. This, in turn, enables increased market participation and lower costs whilst upholding the inherent regulatory standards and security benefits of the blockchain distribution.

Recognizing this, RedSwan decided to launch its token studio on the Hedera network. Through this new platform, Hedera community members will be able to participate in creating and investing in all types of digital security tokenized assets.

RedSwan’s continued focus on fractional commercial real estate assets will ensure the Hedera community users are allowed to own a piece of commercial real estate that has traditionally been out of reach for the smaller investor. These digital shares have the capability to be tradable 24/7 on the global market exchanges — in turn bolstering liquidity.

The team at RedSwan has 65+ years of combined private equity real estate and technology commerce experience and currently has $5B in tokenized assets with an expectation of growing to $25B in the next 36 months. RedSwan decided to leverage Hedera for its highly optimized and built-for-purpose Hedera Token Service (HTS) that allows RWAs to be tokenized with a best-in-class combination of speed, sustainability, security, and low fixed fees.

As pioneers in the real estate tokenization space, it is of utmost importance to RedSwan that they can easily adjust and react to shifting regulatory requirements. The native HTS functionalities of Know Your Customer (KYC), Anti-Money Laundering (AML), and royalties enforced on-chain mean that they can both issue their tokens as securities as well as adjust their product offering in line with regulatory compliance globally.

RedSwan will create ERC-20-compliant securities thanks to the EVM-compatible Hedera Smart Contract Service (HSCS). The token standard for creating compliant digital securities will be open-source code for the Hedera community, available on GitHub. The platform will accept USD and hUSDC, the USDC stablecoin by Circle that operates on the Hedera network payment rails.

“RedSwan are early pioneers in Real-World Asset (RWA) tokenization, and place among the global leaders in the CRE space,” said Sabrina Tachdjian, Head of Fintech & Payments at The HBAR Foundation. “We are excited to accompany their next stage of growth and innovation, and to support the use of the Hedera network to host billions in tokenized real estate.”

“RedSwan CRE is leveraging its 65+ years of combined professional CRE capital markets and technology leadership to create, issue, and distribute high-quality security token offerings on Hedera,” said Ed Nwokedi, CEO & Founder of RedSwan CRE. “Together with The HBAR Foundation, RedSwan CRE will register millions of real estate investors and provide access, affordability, and liquidity of quality commercial real estate investment opportunities via our high-capacity digital marketplace offerings.”

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RedSwan CRE Marketplace

RedSwan CRE provides solutions to make investing in high quality, commercial real estate (CRE) properties more affordable &liquid through digital CRE tokens.