The Marketplace
At the core of the platform is the marketplace.
This will function in a similar manner to what now may be termed legacy marketplaces, by providing both a web app and a mobile app that allows buyers to browse, inspect and apply for properties.
From a consumer perspective, strong user interface design guidelines will create an environment that is both familiar and appealing.
However, integrated into the interfaces will be crypto-specific touchpoints, such as the ability to view property prices or required deposits in the digital currency of their choice, as well as guides and educational tools designed to familiarise users with the methods and mechanisms of conducting these forms of transaction, and best-practice outlines to protect users and their holdings from either bad actors or simple accidental loss.
These apps will also be utilisable by those on the selling side of the marketplace, by providing anonymised data on user patterns and behaviours, market trends (within both the property and crypto industries) and other trackable metrics, as well as offering sellers a variety of methods to improve visibility to buyers via premium advertising options.
These will be supported by a commercial portal, in which agents can connect with vendors and developers to create new networks and opportunities, track their interactions with potential buyers via a custom CRM dashboard, and access some of the crypto-specific assets which will be offered to decrease friction and ensure compliance and security for all parties (see below).
Stock management, audience targeting, lender interactions and other requisite functions of the real estate industry will be integrated, as will those tailored for the cryptocurrency industry such as currency conversion and management, block explorers and more.
The marketplace will be supported by an extensive network of legal advisors, who have created proprietary handbooks for agents and developers which outline the specific mechanisms by which these forms of transactions can be safely conducted.
These include contract templates that have been legally assessed for compliance with both state and national laws, directions for utilising registered escrow services provided by B4Real and outlines and analysis of the relevant laws and regulations which may be unique to these transactions.
There will also be provision for vendors, agents and developers to receive support as required from our strategic partner network of legal advisors, which - dependent upon the format and degree of sophistication and input required - may be provided gratis, or subsidised through subscription fees and usage of the B4RE token as a payment mechanism.
The strategic partner network also includes a considerable selection of specialist taxation advisory services, with a strong grounding in crypto-related tax laws.
These partners have also contributed to the establishment of the standardised frameworks contained within the handbooks, and are also able to assist both buyers and sellers to ensure compliance with the nebulous Australian taxation system as it pertains to digital wealth.
The B4Real escrow service factors into the provision of legal assistance for sellers.
As there can be significant delays between the formalisation of a transaction and final settlement, a trusted intermediary is required to ensure any deposits are held securely, mitigating risks for both parties in the event of an unforeseen change in circumstance such as developer liquidation.
As B4Real is a Black Tie Digital brand, the platform benefits from AUSTRAC certification as a Digital Currency Exchange, a licensed Independent Remitter, and can leverage internal Licensed Real Estate Agent status via our sister company YA Real Estate.
While all of these accreditations demonstrate strong reliability and compliance, the platform has also engaged in discussions with PEXA, the government-supported industry standard for digitised real estate transactions and settlements, to register and monitor escrow wallets, providing a further layer of transparency and accountability.
This unique arrangement ensures all parties are protected to the strongest possible degree.
As the current regulatory environment in Australia (pertaining to taxation law and obligations) does not allow for any form of hedging via disposal (ie digital currency conversion) to remove volatility from deposits, escrow services will be offered through a variety of mechanisms, selected to reduce risk to all parties while avoiding premature CGT event incursion:
Property transactions in which settlement is expected within 90 days will accept a full range of digital currencies under escrow, including volatile assets such as BTC. Where these escrowed funds are not in the form of stablecoins or fiat, a 10- 20% margin (dependent upon market conditions and time to settlement) will be required in order to hedge against value loss.
Escrowed funds for property transactions in which settlement is expected in greater than 90 days (particularly for off-the-plan purchases) will only be accepted in the form of stablecoins or fiat (the latter of which can be provided by buyers holding volatile digital assets via collateralisation through the B4Finance platform).
The next marketplace support system is our registered Digital Currency Exchange.
Developed as part of our sister platform, B4Biz, this is a key solution provider to ensure that buyers and sellers can transact in the currency they choose - digital or fiat.
While in the short term the DCE wills simply utilise its licensed status to legally cover all remittance while accessing external liquidity and currency conversion capabilities, it is anticipated that the liquidity induced by engaging with the real estate industry will lead to independent operation within a short period of time (although there is currently no intention of the DCE acting as a traditional consumer-facing exchange).
Operating a DCE allows B4Real to directly remit funds to participants in transactions while ensuring legal compliance, allowing the platform to act as a nexus between the DCE entities, lenders, escrow wallets, and buyers and sellers, and further cementing B4Real’s position as a trusted industry stakeholder.
Buyers will be able to transact (whether outright purchasing or borrowing using digital collateral) using a variety of digital currencies, with B4Real able to convert said currencies as desired by the receiving party.
While the published number of accepted currencies is somewhat restrictive when assessed against the crypto market as a whole, it is important to note that as B4Real effectively acts as an intermediary between marketplace participants, the platform is chain-agnostic - the only limitations on currencies which can be utilised pertain to their legal status, AML/CTF risk status, liquidity and perceived volatility, and ability to be easily traded via regulated DCEs.
Should a buyer wish to utilise a currency not currently listed as accepted, individual assessments can be made and OTC transactions conducted within the existing framework, subject to the aforementioned conditions as well as the acceptance of the transactional counterparties.
The blockchain-based currencies currently accepted by B4Real include:
BTC (Bitcoin)
ETH (Ether)
MATIC (Polygon)
ADA (Cardano)
USDT (Tether)
USDC (USD Coin)
XEC (eCash)
DASH (Dash)
BCH (Bitcoin Cash)
DOT (Polkadot)
B4RC (B4Real Credits)
LTC (Litecoin)
Additionally, the platform can accept the following centralised digital currencies and trade credits, subject to vendor approval:
BTC (BBX Trade Credits)
UC (Universal Currency Trade Credits)
B4$ (B4Biz Treasury-Backed Trade Token)
Once listed, the platform will also accept the following Black Tie intrinsic utility tokens:
B4RE (B4Real utility token)
B4B (B4Biz utility token)
The platform intends to assess and (if approved) implement transactional capabilities for other high-volume digital currencies shortly, including SOL (Solana), DAI (MakerDAO’s stablecoin) and others.
The final layer of support comes from the extensive network of blue-chip lending platforms that have partnered with B4Real to provide the high levels of liquidity which are inherently demanded by the property sector.
Our partnerships with several private capital providers mean that both Australians and foreign investors can access mortgages that are secured and regulated under the highly regulated Australian financial system.
We have currently secured exclusive distributorship rights from Orion Capital Partners via our brokerage partners Pegasus Capital Advisory (see ‘B4Finance’ below for more details) and are in late-stage negotiations with several other major capital providers.
By providing the requisite collateral management and conversion services and ensuring comprehensive compliance at all levels of operation, these traditional financial service providers can integrate and access a dynamic new market segment while remaining focused on their core directives.
Combining all of these support mechanisms with an established network of property developers, real estate agencies and other tertiary industry participants, will allow B4Real to become a cohesive and holistic platform for managing all aspects of this new form of property acquisition and ownership transfer.
Anticipated revenue sources come from several streams.
The primary income source is anticipated to be the sale of B4RE tokens, which serve to incentivize and reward continued usage of the platform for both buyers and sellers - more details are contained within the following section, ‘The Tokens’.
Incomings are projected via the following fund inflows:
Agents and sellers will be required to pay a small subscription cost, which will allow them to offer a large quantity of properties for sale.
This will be up to two orders of magnitude lower per property than the costs associated with listing properties on existing marketplaces, in order to encourage the adoption of the B4Real platform and the initial acquisition of stock.
This subscription will enable access to the resources outlined above, although access to more sophisticated data and resources may require a premium access tier.
Agents and sellers will also be able to pay to create premium listings to increase visibility and reach.
Instead of charging significant up-front rates to sellers to engage with the platform, sellers will be charged a small fee of up to 0.6% upon settlement.
This can be tracked through our escrow wallets and the provision of associated services such as legal and conveyancing.
By utilising a commission-based model, B4Real can further encourage adoption by sellers, the costs of which can easily be offset by gaining exclusive access to a highly motivated market of sellers.
Buyers utilising the lending services offered by B4Real will be subject to market-competitive interest rates, with the profit from the loans further funding operations via a revenue share model enacted with the lending providers.
It is important to note that all costs incurred by sell-side participants can be reduced significantly by the usage of the B4RE token as a payment currency.
In the case of interest incurred on mortgages by leveraged buyers, a small degree of incentivization through reduced APR will be offered to those buyers holding B4RE.
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