Societies have used money for thousands of years as a trusted unit of account and medium of exchange. The detrimental effects of inflation, though, render today’s currencies an inefficient store of value.
United States Property Coin is determined to solve this problem by becoming the first real estate-asset backed digital currency in the world’s largest economy. Funded and sponsored by Southern Californian real estate development firm Primior, USPC tokens will function as fractionalized ownership in a diversified portfolio that is expected to benefit from current income and long-term appreciation of real estate assets, creating a more reliable store of value and medium of exchange.
Real estate backed currency provides two primary benefits:
- A high level of confidence for long-term appreciation and;
- The ability to generate income/more value.
Real estate appreciation has tended to outpace the rate of inflation in virtually any five-year period on record. While other asset backed tokens are subject to devaluation, USPC will provide investors a stable alternative that has the potential to appreciate over time and deliver yield by default.
Index funds, real estate investment trusts and other long-term investment vehicles have proven to be highly successful instruments for combating inflation and accumulating wealth. With the development of blockchain solutions that comply with securities regulations, USPC offers investors a more liquid and transferable option by securitizing physical, income-producing properties located throughout U.S. urban markets.
As a cryptocurrency backed by physical, income-producing real estate, USPC aims to provide an effective tool to work around rising inflation and market volatility whenever and wherever in the world it may occur. Management foresees a day when token holders, who initially seek value in a rapidly appreciating asset, would see greater value in USPC as a more risk-adjusted investment option.
For more information about USPC or to sign up for their November security token offering, visit USPC.io.
This story was first published on Security Token Market.