April 4, 2023
There is a wave of CRE debt that has to refinance in a new rate environment and in a new occupancy environment.
There is a wave of CRE debt that has to refinance in a new rate environment and in a new occupancy environment. This is setting off all sorts of alarm bells in the banking sector. The All in podcast folks are talking about it, Zero Hedge (New "Big Short" Hits Record Low As Focus Turns To $400 Billion CRE Debt Maturity Wall https://bit.ly/436ZuFm) is talking about it, and everyone in Real Estate is talking about it. Now let's talk about how this is likely the singular item which will drive real adoption of tokenized real world assets.
1) Banks won't lend and are scared
2) Depositors, are scared of banks and want to invest in real assets, that have value, but they need liquidity.
3) Major Financial players along with Fintechs are tokenizing assets (including Real Estate) on their own tokenization platforms. Goldman Sachs, U.S. Bank, Tokeny, Oasis Pro Markets, AKRU, Red Swan Ventures
This is what will drive tokenization of real estate when you can tokenize, refinance, bring some liquidity in, and service the asset or fund going forward. As long as you have auditable real time data on the underlying asset.
This is the structural change we need. This more than just keeping 10% cash on hand for redemptions ala an interval fund (see todays headlines). We need to tokenize these funds, with third party marks on the assets, have the redemptions and then have quarterly trading on a venue like Oasis Pro Markets, ADDX, Archax, and SDAX. https://reut.rs/3nJDYpU
When players like Goldman Sachs and Jane Street are going to make markets in Tokenized RE assets and funds on behalf of their clients, we have fundamentally changed store of value, and moved the banks away from being a shock absorber in the middle...the times they are a changin'...The role of the exchange will grow, data is key, and ignoring it won't make it better. Technology will shake up all real estate. Altus Group...Coinbase Asset Management