Key Information:

• RealNOI has introduced a tokenized rental income platform powered by Chintai.
• This platform allows trading of rental cash flows on secondary markets, aiding property owners in refinancing during high mortgage rates.
• Initially listing $570 million of assets, up from $124 million due to strong demand.

RealNOI, aimed at converting real estate income into a tradable asset, has launched a blockchain technology-based rental income platform using Chintai’s tokenization services.

It offers investors access to cash flows amounting to $570 million from nearly 1,900 apartments, with projected annual returns exceeding 5%. In contrast to traditional real estate tokenization that requires fractional ownership transfer, RealNOI emphasizes only rental income, removing needs for title transfers, notary services, or direct property management. All rental cash flows are transparently recorded on the blockchain and are eligible for trading on secondary markets.

RealNOI’s launch is a significant increase from the $124 million initially expected when it combined forces with Chintai in December.

“We have been flooded with inquiries [since the announcement],” said Connor Gallic, chief blockchain officer at RealNOI. In an interview with CoinDesk, he shared insights from a report by CRED iQ indicating that 40% of multi-family property loans are facing refinancing challenges due to rising interest rates affecting property valuations, necessitating more capital. Tokenizing rental cash flows could help address these capital challenges.

“There’s a big dislocation in the market,” Gallic added. “Our solution resolves that. It also provides the crypto community with an opportunity to demonstrate how crypto markets can substantially transform the financial sector.”

Chintai describes its platform as the “Shopify” for asset tokenization, backed by a layer-1 blockchain and the native token CHEX that fuels the network. Chintai Network Services Pte Ltd is regulated by Singapore’s Monetary Authority, functioning as a Capital Markets Services provider for digital securities trading.

In this arrangement, RealNOI selects and manages property sources, while Chintai executes the tokenization procedures, including developing RentStream tokens representing rental income, automating rent transactions via smart contracts, and ensuring compliance.

A Chintai spokesperson remarked, “The launch of RealNOI is thrilling, and this model can be replicated across various sectors. Countless iterations of RealNOI could emerge with Chintai at the helm.”