- Quarter, Inc. has announced the tokenization of home equity on the TOKO asset tokenization engine.
- Through a smart contract, the Quarter Asset token represents proportional ownership of a home and rights to a monthly fee, while the Quarter HPI token represents future appreciation of the home.
Quarter, Inc., a pioneer in owner-occupied fractional equity home funding and technology, has made a groundbreaking announcement regarding the tokenization of home equity on the TOKO asset tokenization engine. This development marks a significant step forward in the world of real estate investment, leveraging the power of blockchain technology to transform the way people participate in the housing market.
The pilot home selected for this tokenization initiative is located in Longmont, Colorado, and was purchased for $740,000. In an alternative financing approach to traditional mortgage credit, the home was financed with third-party investors who directly supplied 97% of the purchase capital. This investment capital has been minted into the Quarter Asset token, which represents proportional ownership of the home and grants rights to a monthly fee.
1/2 🏠Quarter – the U.S.’ first fractional equity home funding program & platform – has announced the equity #tokenization of a $740k home, with third-party investors supplying 97% of the purchase capital as alternative financing to mortgage credit using @TOKO_network #OnHedera⤵️ pic.twitter.com/mryqCn6tZL
— Hedera (@hedera) June 1, 2023
Additionally, the Quarter HPI token has been introduced to represent the anticipated future appreciation of the home.
To facilitate the tokenization process and ensure transparency, Quarter has partnered with TOKO, a digital asset creation platform. TOKO utilizes distributed ledger technology to create the investment tokens and disseminate market information. This collaboration aims to deliver on the promise of blockchain technology for financial inclusion by tokenizing real-world assets.
Scott Thiel, the founder of TOKO, expressed his enthusiasm for this collaboration, stating that the Quarter tokenization project is a significant milestone in the evolution of finance. By offering tradable investment securities backed by owner-occupied homes, the Quarter tokens provide investors with the opportunity to engage in fractional ownership and trade passive positions of homes on the Quarter network.
The integration of the Hedera network in tokenizing home equity assets further enhances the security and scalability of the Quarter tokenization initiative. Hedera’s robust ecosystem enables efficient ownership transfer, enhanced liquidity, and increased trust. This partnership between Quarter, TOKO, and Hedera demonstrates the potential of tokenized home equity assets in the digital age.
The CEO of Quarter, Shannon Diesch, expressed her excitement about witnessing the tokenization of her own home equity, highlighting the cost-saving benefits of direct investment compared to traditional mortgages. Diesch emphasized the future potential of creating a secondary marketplace for these security tokens, allowing investors to trade or convert their home’s rising equity into cash. The ambitious vision of Quarter is to democratize access to housing capital, providing more affordable options for consumers who are currently priced out of the housing market.
The tokenization of home equity on the TOKO platform by Quarter sets a precedent for the future of real estate investment. By leveraging blockchain technology and digital assets, this innovative approach has the potential to revolutionize the real estate market, making it more inclusive, liquid, and accessible to retail and institutional investors worldwide.