Kin Capital Launches $100 Million Tokenized Real Estate Debt Fund on Chintai Network, Aiming for 14-15% Yield

The fund focuses on real estate trust deeds, aiming for a yield of 14% to 15% for institutional investors. Chintai is a blockchain that centers on real-world assets (RWAs). It is regulated by the Monetary Authority of Singapore, which oversees capital market products.

Kin Capital is launching a $100 million tokenized real estate debt fund on the Chintai network. This network emphasizes RWAs, as CoinDesk reported exclusively. The fund will hold first-performing real estate trust deeds. These are contracts between borrowers and lenders that ensure the property is held in a neutral, independent trust until the loan is paid off.

The initial offering includes a $5 million tranche. There are plans for more offerings throughout 2024 and early 2025. Accredited investors can participate with a minimum investment of $50,000. The expected annual return is between 14% and 15%, with quarterly distributions to investors.

Tokenizing funds is a significant step in integrating traditional investments, known as real-world assets (RWA), into blockchain technology. This aims for greater efficiency, lower costs, and instant settlements. Reports from Boston Consulting Group and 21Shares suggest that tokenized assets could reach over $10 trillion by the end of the decade. McKinsey offers a more conservative estimate of $2 trillion, highlighting that widespread adoption is still a long way off.

Chintai operates as a layer-1 blockchain dedicated to tokenized real-world assets. Its native token, CHEX, powers the network. Chintai Network Services Pte Ltd, responsible for ecosystem development, is licensed by the Monetary Authority of Singapore (MAS) to act as a Capital Markets Services provider. It also functions as a Recognized Market Operator for digital securities, according to the project’s white paper. Another unit, Chintai Nexus, is based in the British Virgin Islands and focuses on issuing non-security tokens. Kin Capital runs a blockchain-based marketplace for real estate investment funds.

David Packham, CEO of Chintai, said, “This partnership not only links traditional finance with blockchain innovation but also offers accredited investors unique opportunities for stable and attractive returns in a fast-evolving digital landscape.”