Funds raised from the STO will be used to acquire a five-unit retail property in a core tourist district in Hong Kong
Digital asset firm Tykhe Capital Group has introduced Hong Kong's first real estate security token offering. Prince Token, a real estate security token offering (STO) is the first of its kind in Hong Kong, according to a statement. It is available only to professional investors, defined in part by a minimum wealth threshold of around $1 million in assets.
Funds raised from the STO will be used to acquire a five-unit retail property in a core tourist district in Hong Kong. Thereafter, investors will be entitled to annual distribution from rental income and future appreciation in property value.
Tykhe is a Hong Kong-based digital asset group with five main subsidiaries focused on exchange operations, asset management, custody, wallets for non-fungible tokens and technology services.
Hong Kong continues to make efforts to realise its ambitions as a virtual asset hub. In addition to cryptocurrency markets, authorities are also encouraging other blockchain developments, such as STOs, which can broaden the investor base due to a lower barrier of entry. Tykhe’s Prince Token, for example, requires a minimum investment amount of just HK$1,000 ($128), compared to the typical $1 million threshold for private real estate funds.
“We are excited to launch the first STO in Hong Kong, revolutionising capital raising within the real estate sector and enabling new investment opportunities,” said Tykhe chairman Dr Gao Han.
