„REDINFING REAL ESTATE: �EXPLORING Real World Asset“�TOKENIZATION
21. February 2024
Zurich 01/2024
2
Who we are?
BRICKMARK Group is a leading Swiss FinTech company and a global pioneer and recognized leader in the tokenization of real world and real estate assets providing the infrastructure to build, issue and manage digital real estate assets and digital securities:
“Providing universal access to worlds prime real estate in a digital, secure and efficient way”
The BRICKMARK Difference
Real estate is the world’s largest asset class, with an estimated value of more than $300 trillion
– over three times the value of the global stock market ($72 trillion).
But almost 93% of the world’s real estate assets ($272 trillion) is currently illiquid.
We help to unlock these values and provide access and liquidity to investors worldwide.
€ 166 m
Value of Transactions Completed
€ 1,24 b
Projects in Preparation
25k+
Registered Investors
Zurich 01/2024
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Tokenization – a multi $trillion ”killer use-case”
Zurich 01/2024
“The next generation for markets, the next generation for securities, will be tokenization of securities and real-world assets”.
Larry Fink, CEO of BlackRock (March 2023)
Big Players enter the game…
Zurich 01/2024
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New Opportunities in Financing
Benefits of Tokenization for Property Owners, Investors and Service Providers (McKinsey 07/23)
IMPROVED CAPITAL EFFICIENCY
LOWER COST OF CAPITAL AND FREE UP CAPITAL IN TRANSIT, REAL-TIME SETTLEMENT
DEMOCRATIZATION OF ACCESS AND WEATLTH
ACCESS TO NEW SECONDARY MARKETS; GREATER LIQUIDITY
ACCESS TO NEW POOLS OF CAPITAL WITH LOWER MINIMUM INVESTMENT REQUIRED
OPERATIONAL COST SAVINGS
OPPORTUNITIES TO EMBED MANUAL AND ERROR-PRONE PRODUCT-STRUCTURING AND
ASSET-SERVICING TASKS INTO THE TOKEN SMART CONTRACT
ENHANCED COMPLIANCE, AUDITABILITY AND TRANSPARENCY (ESG enhancement)
EMBEDDING OF RULES AND CREDENTIALS INTO THE TOKEN SMART CONTRACT
(EG, INVESTOR QUALIFICATION, CARBON CREDIT VERIFICATION)
CHEAPER AND MORE NIMBLE INFRASTRUCTURE
OPEN-SOURCE TECHNOLOGY DRIVEN BY THOUSANDS OF WEB3 DEVELOPERS AND
BILLIONS OF INVESTMENTS DOLLARS
ASSET OWNERS
SERVICE PROVIDERS
INVESTORS
REVENUE OPPORTUNITY
COST EFFICIENCY
REVENUE OPPORTUNITY
COST EFFICIENCY
REVENUE OPPORTUNITY
COST EFFICIENCY
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Our proprietory platform BRICKGATE has become the 1st vertical tokenization hub for
real estate, infrastructure and sustainable assets in Europe since its launch in June 2023
Insurance /
Pensions
Private Property
Owners
Funds
Developers
Institutions
Exchanges
Retail
Investors
KYC / AML
Banking Services
Custody
Tokenization Process
Distribution
Real Estate
Asset
(Debt, Equity or right of Property SPV)
Token/NFT
Qualified
Investors
Brokers /
Dealers
buy + sell
buy + sell
Direct Placement
€
$
BRICKGATE: Tokenization-as-a-Service
Industry leading best practice: Regulatory framing and agile managed implementation of on-the-fly digital asset tokenization (FINMA, FMA, BaFIN compliant)
Support of regulatory conformity
Agile managed implementation and governance
Origination /
Digital assets regime
Distribution /
Investment community
Product /
Token
Phase I: 30- 90 DAYS
Phase II: 3 – 6 MONTHS
Phase III: Operational
Structuring /
Due Diligence
Configuration
Tokenization
Integration / Connectivity
Digital Asset Servicing / Lifecycle Mgmt
Burning / Redemption
Validation and Prodution
Termination
Tokenization
Initiation
BRICKGATE platform service
Regulatory Compliant
Regulatory Monitoring
mostly established by Brickmark group
high issuer contribution obligation
value driven by BrickGate TaaS platform
value driven by business case
Regulatory dimension to be clarified by issuer
After go-live regulatory implementation requires continuous monitoring
Tokenization Practice ©
Zurich 01/2024
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Tokenization of CHF 130m prime property in Zurich
Dr. Alexander Koblischek
Managing Director of RFR Management
"We gladly accepted the Brickmark token as part
of the purchase price. We assume that digital financial instruments will also significantly gain in importance
in the real estate sector in the future."
Proof-of-Concept: In January 2020 BrickMark completed the largest ever real estate tokenization on the blockchain.
The transaction was also highlighted as a milestone in the sector in research studies of University of Oxford and the MIT.
Successful Use Cases
Zurich 01/2024
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Originally Designer by Horace Field in 1904, Mansion House is the epitome of British elegance and design right next to Westminster Abbey.
MANSION HOUSE, LONDON (U.K.)
Selected Tokenization Projects
Zurich 01/2024
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Source: SDX
Issuer | SIX Group AG | UBS AG, London Beanch | City of Lugano |
Status | Senior, unsecured | Senior, unsecured | Senior, unsecured |
ISIN | CH1142754337 (D) / CH1142754345 (T) | CH1228837865 | CH1232107172 |
Issuance Date | 29 November 2021 | 3 November 2022 | 1 February 2023 |
Size | CHF 150m | CHF 375m | CHF 100m |
Coupon | 0.125% p.a., fixed | 2.330% p.a., fixed | 1.625% p.a., fixed |
Form | Uncertificated securities (einfache Wertrechte') in accordance with article 973c of the Swiss Code of Obligations | Uncertificated securities (einfache Wertrechte') in accordance with article 973c of the Swiss Code of Obligations | Uncertificated securities (einfache Wertrechte') in accordance with article 973c of the Swiss Code of Obligations |
Intermediated securities | Intermediated securities by entry into the main register of SDX (Dig.) and main register of SIS (Trad.) | Intermediated securities by entry into the main register of SDX | Intermediated securities by entry into the main register of SDX |
Conversion option | Yes, exchange into other ISIN | Not Applicable | Not Applicable |
Listing | SDX Trading (Digital) / SSX (Traditional) | SDX Trading and SIX Swiss Exchange | SDX Trading and SIX Swiss Exchange |
Settlement and clearing | SDX CSD (Digital) / SIX SIS (Traditional) | SDX CSD and SIX SIS (via operational link) | SDX CSD and SIX SIS (via operational link) |
Documentation | Standalone Prospectus | Standalone prospectus, closely aligned to UBS AG EMTN | Standalone Prospectus |
Swiss Bond Index Eligibility | Yes | Yes | Yes |
SNB Repo Basket Eligibility | No | No | Yes |
SIX Group Inaugural dual part Bond
(Digital & Traditional part)
UBS Inaugural Digital Bond
City of Lugano
Inaugural Ditigal Bond
Examples of Digital Bonds on SDX
Zurich 01/2024
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Benefits from Tokenization for improved ESG-Standards
Zurich 01/2024
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BETA Version to be launched in Q1 2024
Outlook: BRICKGATE goes mobile
Zurich 01/2024
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BRICKMARK – The Future of Real Estate Investing
Thank you!
Please contact us for further questions:
Stephan Rind
Founder & CEO
s.rind@brickmark.net
“The token market will be larger than the securities market, because in some way it will absorb the securities market. All the securities can be tokenised today. The beauty of the token is that you can represent anything, and not only securities, and that is what will drive at first the growth of the token.”
Etienne Deniau, Head of Business Strategy, Société Générale Securities Services
�
Zurich 01/2024
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Disclaimer
This presentation is strictly confidential to the recipient and has been prepared by BrickMark Group AG (the “Company”; together with its affiliates, the “Group”) solely for information purposes. By attending or receiving such presentation, you agree to be bound by the following terms.
This presentation may not be reproduced, retransmitted or further distributed to the media or any other person or published, in whole or in part, for any purpose. Failure to comply with this restriction may constitute a violation of applicable securities laws. This presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities and/or tokens of the Company or the Group in any jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This presentation does not constitute a prospectus or a similar communication within the meaning of former articles 752, 652a and/or 1156 of the Swiss Code of Obligations, articles 35 et seq., 69 or 90 of the Swiss Financial Services Act or a listing prospectus within the meaning of the listing rules of the SIX Swiss Exchange or any other trading venue. The information contained in this presentation has not been independently verified. Neither the Company nor any affiliate of the Company are under any obligation to update or keep current the information contained herein. Accordingly, no representation or warranty or undertaking, express or implied, is given by or on behalf of the Company, its affiliates or any of their respective members, directors, officers, agents or employees or any other person as to, and no reliance should be placed on, the accuracy, completeness or fairness of the information or opinions contained herein. None of the Company, its affiliates or any of their respective members, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation.
Neither the presentation nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions, or distributed, directly or indirectly, in the United States of America, its territories or possessions. Any failure to comply with this restriction may constitute a violation of U.S. securities laws. The presentation is not an offer of securities or tokens for sale in the United States. Neither the Company nor any of its affiliates have registered and do not intend to register any portion of the token sale in the United States or to conduct a public offering of any securities in the United States. The Securities may not be offered or sold in the United States except pursuant to an exemption from, or transaction not subject to, the registration requirements of the Securities Act.
Additional restrictions may apply according to applicable securities laws of other jurisdictions, including, without limitation, the European Union, Italy and the United Kingdom.
This presentation includes forward-looking statements, beliefs or opinions, including statements with respect to plans, objectives, goals, strategies, estimated market sizes and opportunities as well as strength of competitors which are based on current beliefs, expectations and projections about future events. The words "believe," "expect," "anticipate," "intends," "estimate," "forecast," "project," "will," "may," "should" and similar expressions identify forward-looking statements. The forward-looking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including, without limitation, management's examination of data available from third parties. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, and the Company may not achieve or accomplish these expectations, beliefs or projections. Neither the Company nor any of its affiliates, nor any of its members, directors, officers, agents, employees or advisers intend or have any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this Presentation.
The information and opinions contained herein are provided as at the date of the Presentation and are subject to change without notice.
ALL RIGHTS RESERVED. © BRICKMARK GROUP AG, ZUG, SWITZERLAND