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alt realtech: Fintech startup ALT Realtech launches world’s first digital real estate exchange

A Bengaluru-based fintech startup, ALT Realtech, has launched the world’s first digital real estate exchange, ALT DRX, allowing investors to buy one sq. ft. of real estate at a time.

The startup, with an India-first launch strategy, has raised $1.6 million in equity and $2 million in callable mezzanine debt for co-investing in real estate assets during its seed round.

ALT DRX’s seed round saw investor participation from one of India’s top law firms, renowned family offices, successful startup founders, and senior professionals from MNCs.

“ALT DRX expects the new platform to solve the problem of illiquidity in mid-size real estate assets and possibly open the gates for capital to move into socially relevant, rent-yielding real estate assets such as rental housing, hostels, care homes, holiday homes, schools, industrial warehousing, high-street retail, hotels, and managed offices,” said Anand Narayanan, founder of ALT Realtech and Ex-MD Damac properties.

ALT DRX will allow owners of these real estate assets to dematerialise their real estate ownership into tokenized, traceable digital assets.

“Our platform will help, say, a 50,000-square-foot building to be tokenized into 50,000 tradeable digital assets, each holding an economic value proportionate to 1 square foot of the said property,” he said.

These tradable digital assets can then be bought, held, traded, and settled instantaneously among pre-qualified, KYC-compliant registered users on its platform. “The platform uses a permissioned, centrally managed blockchain-based ledger protocol that restricts the transfer of these digital assets to foreigners while attempting to build user credibility by using Zero Trust Architecture,” said Avinash Rao, founder of ALT Realtech.

He further said that access to real estate has always been only for the more privileged due to the larger savings required to buy them.

“The democratisation of real estate ownership by dematerializing it empowers everyone to co-own high-quality residential as well as commercial real estate managed by professionals,” said Rao.

Currently, the global real estate market is valued at $230 trillion, greater than the combined value of global stocks and bonds at $170 trillion.

Experts believe that in the next 7 to 10 years, the tokenization of real estate will pave the way for extensive real estate exchanges to emerge across the world, which in size, scale, and credibility would compete against the NASDAQ or NYSE.

ALT has been co-founded by a group of senior professionals from investment banking, real estate, and technology.

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