Kasa

Kasa operates a financial platform in South Korea that enables fractional investment in commercial real estate. Founded in April 2018 by Yea Changwan, the company aims to democratize access to high-value asset classes previously accessible only to institutional or high-net-worth investors. Yea, a Stanford University computer science graduate, was inspired to address wealth disparity and asset concentration, leading him to establish a platform for more accessible investment. Kasa was designated an Innovative Financial Service by Korea’s Financial Services Commission in December 2019, allowing it to operate within a regulatory sandbox.

The platform's business model revolves around Digital Asset-Backed Securities (DABS), which represent fractional ownership of commercial buildings. Kasa digitizes asset-backed securities (ABS) issued by real estate trust companies, allowing users to buy and sell these DABS on its mobile app, with investments starting from as low as 5,000 KRW (approximately $4.50 USD). Investors earn returns in two primary ways: through quarterly dividends from the property's rental income and from capital gains when the building is eventually sold. The platform utilizes a private blockchain ledger to ensure the transparency and security of transactions.

The company has raised approximately $32.6 million in funding from investors including Kakao Ventures, Shinhan Investment Corp, and WeMade Entertainment. In March 2023, Kasa was acquired by Daishin Financial Group, a move intended to integrate its services more deeply into the established financial system and prepare for the broader adoption of security token offerings (STO). As of late 2023, Kasa had successfully launched seven building offerings and completed the sale of two, delivering yields of over 10 percent to investors.

Keywords: fractional investment, real estate, proptech, fintech, digital securities, asset tokenization, commercial real estate, investment platform, DABS, security token