#Red swan tokenization series

Order your reader now Credit Card Tokenization - a History But while chip cards protect against fraud that occurs when someone pays at a physical store, tokenization is primarily designed to fight online or digital breaches. Just like the nationwide shift to chip cards, tokenizationвЂ™s end game is to prevent the bad guys from duplicating your bank information onto another card.

The actual bank account number is held safe in a secure token vault.

#Red swan tokenization series

In credit card tokenization, the customerвЂ™s primary account number (PAN) is replaced with a series of randomly-generated numbers, which is called the вЂњtoken.вЂќ These tokens can then been passed through the internet or the various wireless networks needed to process the payment without actual bank details being exposed. Often times tokenization is used to prevent credit card fraud. Tokenization is the process of protecting sensitive data by replacing it with an algorithmically generated number called a token. Basically, tokenization adds an extra level of security to sensitive credit card data. Red Swan makes money by taking a percentage of the equity thatвЂ™s issued, and tokens sit within a digital wallet custodied by Prime Trust and are insured up to $1 billion.вЂњTokenizationвЂќ is a super-buzzy payments word at the moment, especially because of the increased attention on mobile payments apps like Apple Pay. While banks will usually only allow roughly 50 percent leverage on a given asset, Red Swan allows property owners to tokenize 90 percent of the net equity underlying a property.

Nwokedi also hopes to help property owners who are property rich and cash poor by allowing them to pull more equity out of their properties without having to go to the bank. вЂњSo theyвЂ™re focused on more risky, lower class-level projects.вЂќ вЂњYou have a very large segment of investors who are between half a million and $10 million that were not participating because they just donвЂ™t have enough equity to buy a quality piece of real estate,вЂќ said Nwokedi. Red Swan claims it has 30,000 accredited investors on its platform. Nwokedi, an 18-year veteran in the real estate space, turned to tokenization because he was looking for a way to open up high-quality real estate investment, usually only available for institutions and high-net-worth individuals, to accredited investors. Related: MaltaвЂ™s Financial Watchdog Highlights Obstacles to Security Tokens After Industry Consultation Polymath only provides the tokenization technology while Red Swan appraises, markets and sells the deals. The tokens are ST-20 tokens running on Ethereum, but Red Swan plans to switch over to an Enterprise blockchain platform in the future for increased speed and security, Nwokedi said. Securities and Exchange Commission, which will allow it to manage assets for accredited investors. Meanwhile, Nwokedi said Red Swan is in the middle of becoming a registered investment adviser with the U.S. New York City-based Red Swan is holding investorsвЂ™ funds in escrow and plans to distribute shares in April. The Fluidity and Propellr project was quietly shelved last summer.) The startup was acquired by crypto custodian BitGo earlier this month. (HarborвЂ™s flagship project reportedly crumbled over paperwork issues. вЂњThey didnвЂ™t really have the real estate background or the expertise to understand how the private real estate market works.вЂќ вЂњI think what kind of happened in the past was there were platforms like Harbor, Propellr and Fluidity, which were really tech companies,вЂќ Moore said.