RealNOI Launches Innovative Blockchain Rental Income Platform
RealNOI, a pioneering company dedicated to revolutionizing the way real estate income is transformed into a tradable asset, has officially unveiled its blockchain-powered rental income platform. This groundbreaking service is built on the real-world asset (RWA) tokenization capabilities of Chintai. The platform offers investors a unique opportunity to tap into cash flows totaling $570 million, derived from nearly 1,900 apartments, with anticipated annual returns surpassing 5%.
In contrast to traditional real estate tokenization methods, which often involve fractional ownership of properties, RealNOI streamlines the process by concentrating exclusively on rental income. This innovative approach eliminates the complexities associated with title transfers, notary services, and direct property management. Rental cash flows are meticulously recorded on-chain, ensuring real-time transparency and the ability to trade these assets on secondary markets.
The launch of RealNOI marks a substantial increase from the initial projection of $124 million when the company first announced its collaboration with Chintai in December. Connor Gallic, the Chief Blockchain Officer at RealNOI, shared in an interview with CoinDesk, “We have been inundated with inquiries since the announcement.” He referenced a report from CRED iQ, a commercial real estate intelligence service, highlighting that 40% of multi-family property owners are facing challenges in securing refinancing due to rising interest rates, which have negatively impacted property valuations and necessitated additional capital. Gallic noted, “Tokenizing the rental cash flows can serve as a crucial bridge to meet these capital requirements.”
“There is a significant dislocation in the market,” Gallic continued. “Our solution addresses this issue and provides the cryptocurrency community with a chance to demonstrate to financial markets the transformative potential of crypto in reshaping the finance industry meaningfully.”
Chintai, which describes its services as akin to “Shopify” for asset tokenization, utilizes its layer-1 blockchain and native token, CHEX, to power the network. Notably, Chintai Network Services Pte Ltd, the firm responsible for ecosystem development, is both regulated and licensed by the Monetary Authority of Singapore (MAS) to operate as a Capital Markets Services provider and a Recognized Market Operator for both primary issuance and secondary market trading of digital securities, as detailed in the project’s white paper.
In this collaborative endeavor, RealNOI is responsible for sourcing and curating the properties featured on the platform, while Chintai oversees all aspects of the tokenization process. This includes the creation of RentStream tokens that represent rental income available for purchase by investors, automated rent disbursements through smart contracts, and adherence to regulatory compliance.
A spokesperson from Chintai remarked, “The launch of RealNOI is incredibly exciting, but the broader narrative is that this model has the potential to be replicated across various industries. Countless iterations of RealNOI could emerge, all powered by Chintai.”
