The Smartlands Platform released the Legal Roadmap
The release of the legal roadmap brings us one step closer to the legal framework as one of the key tasks of the Smartlands Platform development.
The legal framework for assets tokenization will feature peculiarities for different industries to provide a tailor-made solution given different nature and characteristics of assets. Real estate itself is an investable asset class therefore tokenization solution is the most straightforward and can be introduced within the shortest period.
It is important to note that it is one of the first blockchain-based assets tokenization solution to describe how it works in legal terms. Smartlands is excited about a powerful boost it will give to tokenization on the Stellar network. We are sure, that Stellar can spearhead the trend of connecting real economy with the blockchain world.
The first legal roadmap is provided for commercial property tokenization as one of key markets for the Smartlands Platform.
In June the team and the legal partner will be working on the assessing and initiating cooperation with advisors, finalizing the structure of the transaction and, if necessary, on the fine-tuning of the issuance structure and cooperation with the token holders’ trustee.
Preparing the offering document (prospectus) for the ABT issuance as well as transaction documents reflecting the structure (trust deed, documents related to real estate) will take up all the July.
Further works on the prospectus and transaction documents along with the consultations with regulators regarding the approving of the former and other related issues will take up the last summer month.
In September the work on the legal framework roadmap for commercial real estate will be heading down the home stretch. The announcement of the first ABT commercial real estate tokenization project as well as other preparations related to the launch of the offering and ABT distribution is planned for the same month.
An outline of the high-level plan on introducing legal framework is as follows:
- The prospectus (offering memo) is to be prepared by a legal advisor and approved by a home regulator or a regulator at the listed venue;
- Trust deed is to be entered between an issuer and a trustee representing the token holders;
- Charge in favor of the trustee of the real estate property (that will be purchased at the expense of the token issue proceeds) is to be created by the issuer;
- The real estate property purchase agreement is to be concluded between issuer and seller;
- If necessary, escrow agreement in favor of the seller of the real estate property will be concluded.
As previously mentioned, the Smartlands Platform cooperates with international legal firms to develop the framework.
