Big news out of Israel this week: the Israel Securities Authority (ISA) has just approved a new trading platform that opens the door to more flexibility when it comes to creating securities around real estate and investment property.
What does this mean for you? This initiative creates new, private financing and trading channels for overseas companies. That will make debt and equity financing and trading in Israel significantly more convenient And it will give accredited investors far greater liquidity for their investments.
For SolidBlock clients, specifically non-Israeli-based corporations and partnerships, this will create opportunities to raise equity or debt on a separate, regulated trading platform for institutional and accredited investors.
This development is especially welcome in the current pandemic conditions – especially amid the pandemic – by enabling newer, faster, more efficient funding options to ensure that innovative projects can weather these challenging times.
Other sectors that will also benefit from these new financing and trading channels will include or along with a few other areas like R&D (high-tech), including VC funds, financing funds, and other types of equity instrumentsI. According to the ISA, the new system adapts TACT-Institutional, which is part of the Tel Aviv Stock Exchange (TASE), which has previously only been used for trading in debt instruments – bonds and securities privately placed to institutional investors. Now, the system is expanding to create additional possibilities for tradable securities in the specified sectors.
Studies show that corporations are less inclined to go public than in the past, possibly driven by the bureaucratic and paperwork burdens along with the limitations and expense of an IPO.
This new initiative will provide an attractive alternative to issue securities and raise equity funds. And since the initiative is tied to the Tel Aviv Stock Exchange, it also leaves the door open to joining the mainstream public capital market (through TASE’s main market) in the future.
SolidBlock has always strived to provide clients with investment opportunities that offer accessible transactions and enhanced liquidity. We’re looking forward to helping our clients benefit from the new ISA platform in so many ways: Giving overseas real estate companies access to liquidity and flexible fundraising alternatives
- Providing accredited investors with a more diverse range of investment opportunities
- Offering real-time private-market trading, including efficient price discovery and automatic clearing by TASE
- Greater leniency in terms of rules for raising capital for accredited investors
We’re looking forward to helping bring new investors to the real estate sector. This new trading platform will make it far easier to achieve SolidBlock’s mission: provide our clients with broader access to venture funding, help security issuers raise more capital, and offer investors true liquidity, all through the use of asset-backed blockchain-powered security tokens.
For more information or to talk about how to make blockchain-based real estate investment part of your wealth planning program, click here to choose your best time for a call.