GPSY
Tokenized Real Estate
Last updated
Tokenized Real Estate
Last updated
Gypsy Token (GPSY) is a security token backed by a portfolio of yield-bearing real estate on the Ethereum blockchain. GPSY's price is backed by real estate equity in a portfolio of global homes as well as cash reserves held by the REIT.
Security Tokens share many of the characteristics of both fungible (erc20) and non-fungible tokens (erc721). Security tokens are designed to represent complete or fractional ownership interests in assets and/or entities. While utility tokens have no limitations on who can send or receive the token, security tokens are subject to many restrictions based on identity, jurisdiction and asset category.
Security tokens are called investment contracts, and they must meet several conditions. These tokens are subjected to securities and regulations. In simple terms, security tokens on blockchain will get their value from tradable and external sources. For this reason, they will always be subject to government regulations.
The ERC-3643 standard is an open-source suite of smart contracts that enables the issuance, management, and transfer of permissioned tokens. $28bn worth of assets has been tokenized through ERC-3643. ERC3643 enables issuers to mint and manage identity-based permissioned tokens to enforce compliance.These tokens only allow users who meet eligibility rules to become token holders by verifying the credentials of users’ digital identities. These credentials are issued by third parties of the issuers’ choices, be it a KYC provider, a bank or a government, etc. The identity-based whitelisting approach makes ERC3643 the most suitable standard for digital securities, as it ensures compliance while enabling on-chain and automated validation processes. Thus, compliant peer-to-peer transfers of digital securities are allowed, enabling their transferability. Aside from ensuring compliance, ERC3643 has more than 120 smart contract functions, enabling issuers to fully control their digital securities such as blocking and unblocking tokens, performing bulk operations and delegating responsibility for operations to third parties.
ERC3643 is trusted by large financial institutions whereby making it the standard for digital securities. In addition, it has also been audited by Kaspersky (one of the world’s leading cybersecurity firms) ensuring the security of the code. This standardization is the catalyst for the adoption of tokenization as it allows all participants to rely on the same logic and functionality; stakeholders don’t need to waste time reinventing the wheel but directly benefit from an interoperable ecosystem.
Purchasing a home with GPSY is like exchanging property equity for a physical property. Properties owned and maintained by Gypsy will be purchasable from the Gypsy website as well as through NFT marketplaces. When an individual buys the home Gypsy will take the home off the market and work directly with the purchaser to transfer the ownership of the SPV to the buyer. The home comes fully furnished with everything that was included in the property. The price of the home is priced as such:
Holding Gypsy tokens alone does not earn rental income. To earn the rental income you must stake your Gypsy and get LGypsy.