Realio Review: An Investor's Guide to blockchain-based Real Estate Asset Management

Contents

The exponential growth of professionally managed global real estate space has prompted Realio to re-shape the space using distributed ledger tech.

What Solution does Realio offer?

Realio brings the following values for organizations and individuals alike.

Investment in real estate private equity and other assets types
Necessary tools for asset digitization and fundraising
Private white-label solution using its tech stack
Marketing services for projects on the Realio platform

How does Realio Network function?

Realio Network

The Realio network is a two-layer system.

Layer-1: Realio network architecture assigns all public permissionless blockchains as layer-1 for tokenized assets support. Realio standardizes asset creation and issuance as well as compliance through a single protocol. Tech specs and customized control is maintained across these various blockchains. As of now, it supports Ethereum, Stellar, Algorand, Ravencoin Fusion, and Binance Chain.
Layer-2: Known as Realio Issuance Network, layer-2 is responsible for asset tokenization and compliance control. Having another layer grants Realio to audit issuer control and easily transfer and record asset ownership across blockchains. The network consists of various validator nodes such as major stakeholders, supported blockchains, asset managers, broker-dealers, etc.

This network running on compliance and asset-tracking protocols are modular in nature. It utilizes a shared, chain-agnostic security token standard to record all token transfer across layer-1. However, while the blockchains (layer-1) verifies their respective transactions, Realio Issuance Network runs its own validation parallelly for synchronization.

The compliance control protocol, built with Hyperledger Fabric, has multiple chain code modules. It ensures governance and legal security across numerous jurisdictions, especially the US SEC.

As a single point entry, the layer-2 network incorporates a plug-and-play structure to include popular blockchains on layer-1. This enables organizations to issue or trade tokens either privately or publicly, amid their members. This layered approach allows organizations to vote at the network level but members at the organizational level.

Realio Token System

Realio Network utilizes three types of tokens.

1. RIO –

Type: Pure utility token and native gas.

Utility:

Fee payments for asset tokenization
Token listing fee on Realio DEX
Trading and discount fee
Staking to be market makers
Enter block reward programs by delegating a stake with a member firm

Notes: RIO is minted or burned as fees are transferred

2. rUSD –

Type: Stablecoin pegged with USD at a 1:1 ratio.

Utility:

The primary method to on/off ramp fiat to Realio DEX
To transfer value across different blockchains through Realio Issuance Network

Notes: Prime Trust account keeps custody of pegged fiat.

3. RST –

Type: Hybrid security-cum-utility token

Utility:

Acquire voting rights
Receive rewards through running nodes and token issuance

Notes:

KYC/AML compliance is a prerequisite to get RST
RST is issued as Algorand Standard Asset

Realio Platform Components

Realio comprises a web-based platform and a mobile app for users to tokenize assets and build their diversified investment portfolio easily.

KYC and Accreditation

To open a Realio account for asset tokenization or to trade, Realio stresses compliance mandates. Hence, it has delegated both KYC and accreditation verification to third-party market leaders. Instead of saving sensitive user data like SSNs on-chain, it is stored off-chain, thus repealing the data leak option.

Prime Trust – Realio’s primary Custody and KYC provider. Realio also hired Polymath, Stronghold, TUSD, and OKcoin as secondary partners.
VerifyInvestor – Realio’s Investor Accreditation Verification provider owned by tZERO

Realio Wallet

The multi-currency wallet serves three different functions –

Fiat – Once KYC is validated, Realio creates a USD account for each user. Then the wallet system enables users to onramp USD (fiat) to this account via credit, ACH (Automated Clearing House), or wire transfer. The fiat custody is given to Prime Trust. Users may choose the option for Bitcoin and Ethereum assets as well.
Crypto coins – For any tokens, rUSD, and cryptocurrencies the wallet is non-custodial and brings in an efficient automated multi-currency key management system. The wallet allows encrypting private keys along with a varying degree of security for decryption. It uses ‘salt’ (random data input) as an extra security measure.
Cold Storage – Prime Trust offers cold storage options for tokens.

RealioX

Realio’s DEX app RealioX allows off-chain/on-chain order book databases and a GUI system for easy secure trading.

Compliance & Control Feature

To ensure security, the compliance protocol allows users to transfer platform issued tokens upon verification, even though KYC compliance isn’t mandatory for accessing DEX and token trading.
Since the compliance protocol runs at the network level, all Realio-based assets obey the same rules across other DEXs. But within the Realio ecosystem, they get extra functionalities. This means issuers have required control to create secondary market-compliant tokens that instantly gets listed on RealioX.

Trading Feature

RealioX offers two different GUIs.
- Basic trading – Offered through Realio wallet GUI’s in-built ‘Swap’ feature.
- Advanced trading – The web GUI brings additional functionalities like decentralized futures, margin trading, and dark pools.
RealioX allows both P2P and OTC (over-the-counter) trade facilities. While the former enables direct trading because of Realio’s interoperability feature with various blockchains, the OTC feature allows intermediary-free, instant large trading of tokens within the network.
It offers private channels for institutional users with long lockups to negotiate, thus avoiding any chance of redemption.
RealioX will have a customizable integrated trading bot feature to help traders in market-making, hedging, and various arbitrage activities.

Reward Feature

Realio’s market maker reward program allows makers using RealioX GUI to earn 100% of the taker’s trading fee in RIO token.
Sharing a Stellar order book enables RealioX users to earn outside of the Realio network.
- When takers pay fees outside the network, makers get paid by minting RIO tokens.
- When makers place orders outside the wallet service, the taker fees get returned to the account issuing RIO which is then burned.

Team

Here’s a brief introduction to the Realio team members –

Founders

Derek S. Boirun, CEO – Commercial Real estate entrepreneur, experienced blockchain-based and EB-5 capital investing
Aaron Gooch, CTO – Expert in software and mechanical engineering space
Eduardo Romeiro, Director of Engineering – Entrepreneur and software engineer
Marcelo Mayano, Chief Experience Officer – A leader and “technology ninja”, managed award-winning tech business MindSmack

Advisors