Manifest Raises $2.5M to Tokenize US Real Estate with DeFi

Manifest, a company dedicated to bringing US private equity real estate onchain, has successfully raised $2.5 million in a funding round. This round was led by VanEck Ventures, with additional participation from Compound, Lattice Fund, and SALT. The funding is aimed at integrating real estate with decentralized finance (DeFi).

Nathaniel Sokoll-Ward, the CEO of Manifest, has a history of founding companies, including Roostify, which focused on mortgages. After spending time in Argentina, where he was immersed in the crypto space, Sokoll-Ward and his co-founder developed Manifest. The company's goal is to provide individuals with a stake in US residential real estate through tokenization.

Manifest's first offering is USH, an ERC-20 token designed to provide exposure to US residential real estate through Home Equity Investments (HEIs). This financial tool is intended to unlock the equity in a home, offering investors a 13% annual return. Sokoll-Ward addressed concerns about the differences between Manifest and other real estate tokenization projects, emphasizing that Manifest's approach is permissionless and leverages DeFi infrastructure. This sets it apart from previous tokenization efforts that were often limited by regulatory requirements and lacked the flexibility of DeFi.

Manifest's strategy involves tokenizing mortgages, effectively creating a capital markets layer for originators in the United States. This approach taps into a $35 trillion market, providing a significant opportunity for growth. The company's legal and industry connections have been crucial in navigating the complexities of this market. Wyatt Lonergan, from VanEck, highlighted that Manifest's model could be applied to various asset classes, not just real estate, making it a versatile and innovative solution.

Lonergan also noted that Manifest's token is inherently yield-bearing, representing the next evolution in tokenization. This funding round will enable Manifest to establish its fund structure and make it available to the public. The company plans to expand its team and address legal considerations to ensure the legality and viability of its product. Lonergan believes that the previous failures in real estate tokenization present an opportunity for Manifest to lead the next wave of innovation in this space.