A network of churches in Northern Colorado is taking a unique approach to raising funds by embracing blockchain technology to securitize their sanctuary. Led by local pastor Blake Bush, the community is looking to raise $2.5 million to purchase the historic Old Stone Church in Fort Collins. The church, currently owned by one of Blake’s parishioners, is being tokenized by REtokens, a real estate brokerage firm specializing in digital assets.
REtokens, in partnership with Polymesh, a Swiss-based organization, announced plans to tokenize $30 million in real estate, offering enhanced liquidity and a wider pool of investors to the market. The company also tokenized $2.25 million in preferred stock offering in August 2023 for its own operations. The Old Stone Church tokenization is one of their first real estate projects, targeting accredited investors with a minimum investment of $50,000.
Investors in the Old Stone Church tokenization won’t receive tax deductions, but can expect a 2-3% yearly increase in the token value, along with dividends based on rental income. Despite potential returns, Pastor Bush emphasizes that investors should be motivated by the desire to do good in the community rather than expecting profits. The church will be governed by a board and an operating agreement, ensuring that tokenholders won’t have a say in the management of the property.
REtokens has raised $1.46 million so far, representing 65% of the $2.25 million offering, and has eliminated an equity fee. While tokenholders won’t be trading on exchanges like Coinbase or Binance, they will have the opportunity to trade tokens on the secondary market at $500 per token to non-accredited church congregants. Pastor Bush envisions a future where more historic buildings can be tokenized, potentially preserving them for generations to come.
As the first tokenized church, the Old Stone Church project represents a new frontier in church fundraising. With a growing trend of church properties being repurposed for commercial use, Pastor Bush hopes to lead the way in preserving historic buildings for their original purpose. The marriage of religion and blockchain technology may indeed be a match made in heaven, offering a unique opportunity for investors to support their community while also potentially gaining returns on their investment.
