This article was originally posted on Mint.
If you haven’t heard of USP yet, now is probably a good time to start paying attention to the web3 real estate project.
USP is the issuer of the USP Token, a trailblazing real estate token on the Ethereum network using blockchain technology to usher traditional real estate investing into the modern era, providing unprecedented opportunity to the entire web3 community.
The USP Token empowers users across the globe to invest in digital representations of real-world-assets (RWAs) via a process known as tokenization.
This means USP users can purchase fractional ownership of a professionally curated, diverse, income-producing portfolio of real estate assets spanning a variety of markets – without the hassle of traditional real estate investing.
What Is USP?
USP is a web3 real estate startup headquartered in Newport Beach, California. The driving force behind USP is traditional real estate investor-turned-crypto-entrepreneur, Johnney Zhang. In addition to being the mastermind behind USP, Johnney also serves as the Founder and Managing Partner of Primior Asset Management, one of Southern California’s foremost real estate investment, management, and development firms.
Primior directly manages and has supervised over $2BN in real estate investments and developments, and the USP team is capitalizing on this expertise to deliver a fully compliant RWA-backed tokenized real estate investment offering.
What sets USP apart from other initiatives is the fact that they are not web3 natives – they are real estate natives who have fully-embraced the power of blockchain. This enables them to utilize a customized smart contract to tokenize and democratize ownership of carefully selected real estate assets already worth $25M at the time of writing.
In essence, the USP Token presents a mature use case for integrating blockchain technology into a traditional market, such as real estate.
What Is Real Estate Tokenization?
“Tokenization” refers to the process where a company, individual, or other entity takes an asset – like real estate – and divides it into smaller, digital units called “tokens.” Each token symbolizes a fractional ownership of the underlying asset (or, in USP’s case, a collection of assets), making it more accessible to investors by allowing them to purchase small, liquid portions of an otherwise illiquid asset.
Larry Fink, the CEO of Blackrock, the world’s largest asset management company, is a leading advocate of RWA tokenization. He contends that tokenization will shape the future of markets, propelling them into the next generation.
Why Should The Web3 World Care?
Over the past decade, the web3 community has grown accustomed to short-lived, volatile, “pump-and-dump” style projects that aspire to become the “next Bitcoin.” However, USP is a different breed altogether.
Instead of short-term, volatile, highly-speculative returns, USP aims to provide stable, long-term returns for investors while enabling them to diversify their portfolios and participate in a fully compliant security token offering.
The USP team has removed the uncertainty from real estate investing, allowing users to access an impressive array of assets – from multi-family apartments and industrial warehouses to retail shopping centers and hotels.
This means that crypto enthusiasts who are ready to dip their feet into traditional capital markets without leaving the comfort of their digital wallets can now do so through the USP Token.
What Is The USPC Stablecoin?
In addition to issuing the USP Token, USP has also announced its plans to launch a brand-new stablecoin called USPC (United States Property Coin) that will have a 2:1 reserves ratio consisting of both cash and real estate.
This means that for every one USPC stablecoin in circulation, there will be two units of both cash (or cash-equivalents such as short-term treasury bonds) and real estate in the company’s reserves. USP will maintain 100% transparency by publishing audited financials, allowing holders of the USP Token and USPC to have complete insight into the reserves, the company’s activities, and their impact on the underlying asset value.
Investors who purchase USP Tokens will benefit from the revenue generated through the issuance of new USPC stablecoins, as well as real estate acquisitions made by USP.
USP will then reinvest a portion of the reserves back into real estate, creating a virtuous cycle of growth and enhancing the value propositions for both USP Token holders and USPC holders.
Final Thoughts On USP and USPC…
This is an ambitious undertaking, but one that USP believes will be beneficial to all parties involved – from investors and developers to cryptocurrency enthusiasts. And that’s why it’s such an exciting project – because it unites traditional capital markets with the decentralized finance revolution.
This is only the beginning for USP, and if everything goes according to plan, they have the potential to revolutionize real estate investing and become a major player in the blockchain world.
You can follow the activities of USP by joining their growing Twitter and Telegram communities, and you can join the waiting list for the launch of the USPC stablecoin here.
