Liechtenstein Regulators Approve Ethereum-Based Real Estate Fund

Wealth Ahead plans to tokenize a real estate fund after securing approval from Financial Market Authority in Lichtenstein.

A fully-regulated tokenized real estate fund has been approved by officials in Liechtenstein.

The AARGOS Global Real Estate Fund was approved as an alternative investment fund by Liechtenstein's Financial Market Authority, the company announced.

The fund provides exposure to a global real estate portfolio through AARGO security tokens - built on the ethereum blockchain - with each token representing one share in the fund.

The fund was created by Ahead Wealth Solutions, a financial services provider based in the nation's capital Vaduz, in collaboration with Bank Frick and blockchain technology provider Token Factory.

The fund's tokenization will also create "Greater efficiency and a higher degree of automation in the transmission process," said Bank Frick head of fund and capital markets Raphael Haldner in a statement.

Funds are protected from manipulation by a centralized entity, and being on the ERC-20 token standard means the company can readily integrate with a "Growing decentralized finance ecosystem," he said.

AIFs are EU-regulated financial vehicles that raise capital from investors and invest these funds with the purpose of making favorable returns.

The Liechtenstein government has previously said it would avoid "Excessive" blockchain regulation and the FMA has previously approved a plan for offering tokenized public offerings for retail investors.

Approval by the regulator means the AARGO fund can now begin onboarding assets and promoting itself to investors.