BPN Capital Group Announces First Blockchain-based Commercial Mortgage Executed at Miami’s Iconic SLS Lux Brickell
Source: BPN Capital Group
Blockchain Commercial Mortgage | Bitcoin ETF Delayed?: The event is to announce the first commercial mortgage to be done using blockchain technology. The collateral is located at the Iconic SLS Lux Brickell in Miami, FL, the announcement will happen on May 18th, 2021 at 7:30 pm ET, which provides accredited investors with a stake in a commercial rental property.
MIAMI, FL, May 13, 2021 (GLOBE NEWSWIRE) — BPN Capital Group announced today the first-ever blockchain-based commercial mortgage associated with a property in the iconic SLS Lux Brickell in Miami, FL. The tokenization of this property will allow accredited investors to directly hold and control their stake, eliminating the restrictions associated with investing in commercial mortgages through conventional channels.
The asset is the Flagship retail corner Situated at the base of the SLS Lux, a 57 story, 450 unit premier residential condominium, and hotel tower. Located on the northeast corner of S Miami Avenue and SE 9th Street, one block away from Brickell City Centre and across the street from Mary Brickell Village.
“This is like the moon landing for blockchain,” said Mr. Edward Rodriguez, CEO of BPN Capital Group. “We are tokenizing a first-in-class fully stabilized property with sophisticated tenants like Chipotle, Ojo de Agua, Kaori, and Bellillo. We are restoring control to accredited investors and family offices over their assets. This also circumvents the hoops they’d have to jump through to invest in commercial mortgages like this on the secondary market.”
BPN Capital Group will offer tokens associated with the commercial rental property to investors who qualify under the US Securities and Exchange Commission’s Regulation 506(c). Following the mandatory one-year holding period, investors will be able to sell or trade their tokens just like any other registered security.
Furthermore, the tokenization of the property means investors are not locked into long-term ownership as they would be with conventional bonds, which take years to mature. Instead, investors can trade their tokens on the SEC and FINRA-regulated Alternative Trading Systems, tZERO. Tokenization is a security traded on an exchange also means investors can part with a small portion of their stake while retaining some of their investment.
“Historically, if you wanted to sell 5% of your holdings, you’d have to call a broker or an accountant or someone like me who would then do a quantitative risk analysis before putting your assets back on the market,” Rodriguez said. “Tokenization puts investors in the drivers’ seat and lets them sell their holdings directly and easily, as they see fit.”
Finally, blockchain ensures an accurate, transparent record of all transactions that occur on the ledger. There is always a trail of whatever was changed, when, why, and by whom. This transparency revolutionizes the investment and lending spaces, which have long been considered opaque and inaccessible to the uninitiated.
“We are proud to be tearing down old walls and democratizing the world of investing and lending,” Rodriguez said. “Society shall embrace these structural changes because things will never go back to what they were before. This is the future, and we’re proud to be part of this historic moment.”
Blockchain Commercial Mortgage | Bitcoin ETF Delayed?
About BPN Capital Group
BPN Capital Group is a DeFi multi-service Firm powered by a network of professionals and Blockchain and NFT technology. The company is dedicated to developing real-world use cases for revolutionary Blockchain technology, including the tokenization of hard assets for improved lending and investing.
Founded in May 2019, BPN Capital Group has held that Blockchain and NFT technology is highly beneficial but underutilized due to lack of accessibility and real-world use cases. It is BPN Capital Group’s mission to solve that problem and help lay the groundwork for the mass adoption of Blockchain solutions in the business world. It does so through hard asset tokenization, commercial lending, and a referral agent membership program.
An SEC staff statement on Bitcoin and mutual funds are making some analysts think that the agency is leaning against approving a Bitcoin exchange-traded fund in the near term, potentially dashing the industry’s hopes that this is the year an ETF is approved.
At least six Bitcoin ETF applications have been submitted to the Securities and Exchange Commission, including from heavyweights like Fidelity. They are awaiting a determination this year. Earlier this year, Canada approved its first Bitcoin-ETFs, and they have proven popular.
The SEC statement, released late on Tuesday, was mostly focused on mutual funds and whether they should offer investors exposure to Bitcoin futures. It says that Bitcoin futures can add risks to mutual funds, and raises particular concerns about liquidity in mutual funds, which need to have enough cash to payout proceeds to investors who sell their shares.
“Among open-end funds, [SEC Division of Investment Management] staff believes at this time that investment in the Bitcoin futures market should be pursued only by mutual funds with appropriate strategies that support this type of investment and full disclosure of material risks,” the statement says.
It is still relatively rare for mutual funds to hold Bitcoin futures, which are offered by CME Group(ticker: CME). But some major companies have begun to consider them. Both BlackRock (BLK)and Morgan Stanley (MS)have said in securities filings that some mutual funds may consider investing in Bitcoin futures. BlackRock disclosed in March that as of the end of January the BlackRock Global Allocation Fund held $6.5 million worth of Bitcoin futures, which made up just 0.0014% of its portfolio. BlackRock had no comment on the SEC’s statement.
Morgan Stanley also allows some funds to buy Bitcoin futures. The company did not immediately respond to a request for comment on the statement.
While much of the SEC statement focused on mutual funds, one section of the staff statement referred to ETFs, and some saw it as a sign that the regulator is cautious about a Bitcoin ETF.