RealNOI, a company focused on transforming real estate income into a tradable asset, has rolled out its blockchain-powered rental income platform build on top of real-world asset (RWA) tokenization service Chintai.
Real estate income is now a tradable asset, thanks to RealNOI, a company that has launched its blockchain-powered rental income platform in collaboration with Chintai, a real-world asset (RWA) tokenization service. This platform provides investors with access to cash flows valued at $570 million from nearly 1,900 apartments, offering projected annual returns that exceed 5%.
Unlike traditional methods of real estate tokenization that involve fractional property ownership, RealNOI focuses exclusively on rental income, eliminating the need for title transfers, notaries, or direct property management responsibilities. Instead, rental cash flows are recorded on-chain for real-time transparency and can be traded on secondary markets.
This launch marks a substantial increase from the initial $124 million projection when RealNOI announced its partnership 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. Citing a report from commercial real estate intelligence service CRED iQ, he stated that 40% of multi-family property owners' loans encountered difficulties in securing refinancing due to higher interest rates reducing property valuations and the need for additional capital. Tokenizing the rental cashflows presents an opportunity to bridge this capital gap.
"There is a big dislocation in the market," said Gallic. "Our solution fixes that. And it gives the crypto community an opportunity to show the finance markets the power of the crypto markets to transform the finance industry in a meaningful way."
Chintai describes its services as "Shopify" for asset tokenization, utilizing its layer-1 blockchain and native token CHEX to power the network. As stated in the project's white paper, Chintai Network Services Pte Ltd, the network's ecosystem development company, is regulated and licensed by the Monetary Authority of Singapore (MAS) to operate as a Capital Markets Services provider and a Recognized Market Operator for primary issuance and secondary market trading in digital securities.
In this collaboration, RealNOI is responsible for sourcing and selecting the properties for the platform, while Chintai handles all tokenization processes. This includes creating RentStream tokens that represent the rental income investors can purchase, automating rent payouts through smart contracts, and ensuring compliance with relevant regulations.
"RealNOI going live is super exciting, but the wider story as well is that this model can be replicated across various industries," said a spokesperson for Chintai. "You could have countless versions of RealNOI launching with Chintai, powering everything."
