By CJ Follini | NOYACK Logistics
March 22, 2022
Blockchain ≠ cryptocurrency ≠ token
The world’s assets are worth over $1,540 trillion, while global equities are worth just around one-twelfth of that, or $120 trillion. This imbalance exists because the overwhelming majority of assets are not securitized, meaning they lack the tradability, fungibility and liquidity of a financial instrument.
Cryptocurrency is starting to play a role in filling this gap. Bitcoin, the first and best-known cryptocurrency, was created in 2009 as a way to reinvent the legacy financial system for a new era. Cryptocurrency is a digital asset that acts as a unit of account, store of value and medium of exchange, much like fiat currency.. But cryptocurrency can also be used to securitize assets, similar to stocks and bonds, through tokenization
In an early example, Overstock.com issued $5 million in CryptoBonds. This was just the beginning; as cryptocurrencies became more popular, more and more assets were securitized in this way. Recently, NOYACK Logistics Income (NLI), a REIT investing in supply chain real estate, NOYACK Capital, is now accepting cryptocurrency payments for shares via a partnership with BitPay. This partnership makes NLI the first ever REIT to accept cryptocurrency, enabling investors to fund their commitment with Bitcoin (BTC), Ethereum (ETH), and five USD-pegged stablecoins.
Understanding security tokens
While much of the hype and speculation in the blockchain world revolves around utility tokens and their potential use cases, security tokens are quietly gaining traction and may represent a more significant long-term opportunity. Security tokens are digital representations of traditional securities such as stocks, bonds, and real estate.
Unlike utility tokens, which are not backed by any underlying assets, security tokens are backed by real-world assets. These benefits have already fueled a billion-dollar security token market cap and many believe that the market will only continue to grow. In fact, while currently in its nascent stages, the strategic market analysis firm Quinlan and Associates predicts that security token issuance will be worth more than $4 trillion by 2030.
One example of a company taking advantage of this burgeoning market is NOYACK. Through their BitPay partnership, investors can convert digital cryptocurrency into ownership of a hard asset.
One of the benefits of cryptocurrency-backed securities is that they are easier to trade than traditional assets. This is because they are digital and peer-to-peer, and thus can be transferred instantly between parties, without centralized intermediaries. This could help to reduce the liquidity premium that currently exists in many markets.
Cryptocurrencies may also help to improve the efficiency of the securities market. One of the problems with the securities market is that it is often difficult to find buyers and sellers for specific assets. This is because there is a lack of standardization in the market. Cryptocurrencies could help to solve this problem by serving as a global standard for securities.
How security tokens are managed
The securities trade life cycle is no simple task. As a result, a wide range of players are involved in its management, including:
Each of these players has a specific role to play in the management of securities. For example, transfer agents are responsible for the safe and efficient transfer of securities between investors. Registrars maintain a record of all security holders and their corresponding shareholdings. And custodians are responsible for safeguarding the assets.
The usage of security tokens does not necessarily disintermediate these players entirely, but rather improves visibility, efficiency, and auditability of the process. With that said, new toolsets and protocols are needed to manage security tokens and the various stakeholders involved. Instead of trading on the NASDAQ or NYSE, security tokens trade on a new era of crypto exchanges like Securitize, INX, and tZERO.
We’re only just seeing the beginning of the security token Renaissance. As the market matures, we can expect to see a wide range of security tokens being issued that represent everything from traditional securities to diamonds, sportcars, art, yachts, and more. While NOYACK, for instance, began life offering real estate investments, we expect to see more types of assets being issued in the future as the market matures.
While regulators haven’t yet fully embraced the idea, and investors are slow on the uptake, as reported by CoinDesk, the market is nonetheless heating up, and growing awareness could see security tokens take off dramatically in the coming years.
A Growing Alternative Asset Class
Cryptocurrencies have been around for less than a decade, but they have quickly become one of the most popular alternative asset classes. At the end of 2018, the total market cap for all cryptocurrencies was just over $100 billion. However, by the end of 2021, that number had surged to over $3 trillion.
That said, it’s still a small group compared to other major asset classes. For one, the global real estate market is worth an estimated $10.5 trillion. If you’re interested in alternative investments, whether to diversify your portfolio, increase returns, or hedge against volatility, alternatives should be on your radar.
NOYACK Capital makes it easy for you to invest in top-tier alternative investments. We combine best-in-class investment management expertise with superior deals sourced from private family office networks available, all while accepting cryptocurrency as investment equity. As savvy investors know, alternative investments offer unique opportunities to generate outsized returns and hedge against volatility in traditional markets. All investors can now gain exposure to these opportunities.
Share this article
December 20, 2022
December 12, 2022
November 30, 2022
Noyack Logistics Income REIT, Inc. “NLI” reserves the right, in its sole discretion, to modify, alter, or otherwise change these Terms of Service at any time with or without notice. Please review the Terms of Service statement periodically for changes. Your continued use of the Site constitutes your acceptance and agreement to be bound by these changes without limitation, qualification or change. If at any time you determine that you do not accept these changes, you must immediately discontinue use of the Site.
The use of this Site is restricted to U.S. Residents with a valid social security number that are 18 years of age or older. Children under the age of 18 are not eligible to participate in the offerings on the Site.
Although NLI attempts to provide accurate information, it does not guarantee the accuracy of information found on the Site. Your reliance on information found on the Site is at your own risk.
The Site, and its contents, are provided to you “as is,” without warranty of any kind, either express or implied. NLI makes no representations, express or implied, including, but not limited to, the implied warranties of merchantability, fitness for a particular purpose, title, non-infringement of the rights of third parties, data accuracy, systems integration, or quiet enjoyment.
NLI, its affiliates, suppliers and service providers do not warrant or make any representations regarding the use or the results of the use of the materials on this Site in terms of their timeliness, correctness, accuracy, reliability, or otherwise. While we make reasonable efforts to provide accurate and timely information, you should not assume that the information provided is always up to date or that this Site contains all the relevant information available. NLI undertakes no obligation to verify or maintain the currency of any information provided on the Site.
Under no circumstances will NLI, its affiliates, suppliers, or any others involved in creating this Site and its contents be liable for any damages or injury, including any direct, indirect, incidental, special, consequential, punitive, or other damages resulting from any circumstance involving this Site or its content (including, but not limited to, damages or injury caused by error, omission, interruption, defect, failure of performance, unauthorized use of this Site, lost data, delay in operation or transmission, breach of security, line failure, defamatory, offensive or illegal conduct of any user of this Site, or computer virus, worm, trojan horse or other harmful component), even if you have notified NLI in advance of the possibility of such damage.
The Site, and all of its contents, including but not limited to articles, other text, photographs, images, illustrations, graphics, video material, audio material, software, logos, titles, characters, names, and button icons (collectively the “intellectual property”), are protected by copyright, trademark and other laws of the United States, as well as international conventions and the laws of other countries. The intellectual property is owned or controlled by NLI or by other parties that have provided rights thereto to NLI. No portion of this Site may be reproduced, duplicated, copied, sold, or otherwise exploited for any commercial purpose that is not expressly permitted by NLI.
You may browse through the Site and occasionally download small amounts of material appearing on the Site that are of personal interest to you for your personal, non-commercial use. You must keep intact all copyright, trademark and other notices contained in your personal copies. You may not reproduce or allow others to reproduce your personal copies of downloaded materials, nor may you make them available electronically. You may not save or archive a significant portion of the material appearing on the Site. You may not attempt to alter or modify the content posted on the Site. Except as expressly set forth in this paragraph, you may not copy, download, display, distribute, publish, enter into a database, perform, modify, create derivative works, transmit, post, decompile, reverse engineer, disassemble or in any way exploit any of our intellectual property or the Site itself.
Other trademarks, service marks, product names, and company names or logos appearing on the Site that are not owned by NLI may not be used without express permission from their owners.
You may not use this Site for any purpose that is unlawful or prohibited by this Terms of Service statement, or cause damage on or through the Site. You promise that none of your communications with or through the Site will violate any applicable local, state, national or international law. Your access to the Site may be terminated immediately in NLI’s sole discretion, with or without notice, if you fail to comply with any provision of this Terms of Service statement.
NLI has no obligation to monitor the Site; however, you acknowledge and agree that NLI has the right to monitor the Site electronically from time to time and to disclose any information as necessary or appropriate to satisfy any law, regulation or other governmental request, to operate the Site, or to protect itself or other users of the Site.
NLI reserves the right, in its sole discretion, to modify, suspend, or terminate the Site and/or any portion thereof at any time for any reason with or without notice to you. NLI shall not be liable to you or any third party for any termination of your access to the Site.
You agree to indemnify, defend, and hold harmless NLI, its subsidiaries, agents, distributors and affiliates, and their officers, directors and employees from and against any and all claims, actions, demands, liabilities, costs and expenses, including, without limitation, reasonable attorneys’ fees, resulting from your use of the Site in a manner that violates or is alleged to violate these Terms of Service, any applicable law, or any warranty you provide herein, or otherwise arising in any way out of your use of the Site. NLI reserves the right to take exclusive control and defense of any such claim otherwise subject to indemnification by you, in which event you will cooperate fully with NLI in asserting any available defenses.
The Site may contain links to Web sites operated by third parties and may also provide third party content on our Site by “framing” or other methods. NLI does not monitor or control the content of any linked or framed sites and makes no representations regarding, and is not liable or responsible for, the accuracy, completeness, timeliness, reliability or availability of any of the content uploaded, displayed, or distributed, or products or services available at these sites. If you choose to access any third-party site or rely on information found within third party content appearing on this Site, you do so at your own risk. The presence of a link to a third-party site does not constitute or imply NLI’s endorsement, sponsorship, or recommendation of the third party or of the content, products or services contained on, or available through, this Site.
If you have questions regarding the Agreement or the practices of NLI, please contact us through our website: noyacklogistics.com.
When using noyacklogistics.com, we may collect the following information:
Contact Information: When you contact us using our online contact form, we collect the messages you send as well as the personal information you provide, such as your name, phone number, and email address.
Application Information: We require certain personal information when you apply online for an Investor account. In addition to basic details such as your name, email address, and phone number, we may require information to verify your identity, such as your social security number and driver's license number.
Log Data: When you access and use our website, we automatically record information concerning the device you are using and your activity on the Websites. This may include your device’s Internet Protocol (“IP”) address, your browser type, the types of information you search for and view on our website, locale preferences, location, identification numbers associated with your device, and your mobile carrier. If you arrived at our website by clicking on an advertisement, promotion, or search result on another website, we also take note of the web page you visited before you came to our website.
Please note that, if you delete or choose not to receive cookies from our website, the functionality of the websites may be impaired.
Additional information may be collected during your use of our website, or when we communicate with you via telephone, email or other means.
If you complete the account registration process, NLI or our business partners may collect information from third parties to verify your identity and bank account information and assess risks related to your account.
We use your information to verify your identity, provide you with quality customer service, evaluate your request for an Investor account and improve our website. We may be obligated by law to retain certain communications and other information concerning you. In addition, we may retain and use communications, transaction details, and identifying information to maintain audit trails for security and anti-fraud purposes.
NLI does not share information concerning you with unaffiliated third parties for marketing purposes. However, we may use your personal information to present you with information concerning offerings that may be of interest to you, via email.
Please note, the receipt of marketing communications via email is voluntary. If you do not wish to receive these communications, you may opt out at any time. To opt out please follow the steps below or contact us at (813) 438-6452 for assistance. If you choose to opt-out, you will continue to receive administrative emails from us.
We disclose information concerning you as necessary to run our everyday business, such as in connection with the movement of funds. We also may disclose information concerning you if required to do so by law or if we believe that such action is necessary to comply with a legal obligation.
NLI is committed to maintaining the security of your information. When you supply information to us through our website, we use TLS (Transport Layer Security) or SSL (Secure Socket Layer) protocols to secure the transmission of information. Once we receive information, we store and protect it using industry-standard firewalls and other technology. Please remember, though, that no method of electronic transmission or storage is 100% secure.
The NLI website is not intended for use by children under the age of 13. In order to use our services, you must be 18 years of age or older.
Customers can opt out of receiving marketing solicitations by emailing us at https://noyacklogistics.com/contact/
NOYACK Logistics Income REIT operates a website at noyacklogistics.com.
Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in partial or total loss.
While the data we use from third parties is believed to be reliable, we cannot ensure the accuracy or completeness of data provided by investors or other third parties.
Neither NOYACK nor any of its affiliates provide tax advice and do not represent in any manner that the outcomes described herein will result in any particular tax consequence.
Prospective investors should confer with their personal tax advisors regarding the tax consequences based on their particular circumstances.
Neither NOYACK nor any of its affiliates assume responsibility for the tax consequences for any investor of any investment.
THE OFFERING MATERIALS MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY’S MANAGEMENT. WHEN USED IN THE OFFERING MATERIALS, THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS. YOU SHOULD READ THE OFFERING CIRCULAR