GromaCoin

01 | Overview

GromaCoin makes it easy for anyone to own real estate. Each GromaCoin represents ownership in a growing portfolio of quality real estate assets, providing dividends, appreciation potential, and durable value to holders. Importantly, a GromaCoin can do more than a traditional real estate investment, combining a portfolio of quality real estate with the flexibility of the on-chain ecosystem. This combination enables functionality that enhances the value of each GromaCoin and the ecosystem overall, e.g. lending, borrowing, treasury functions, and even new financial tools like “rentvesting” to help renters turn their monthly rent into ownership. We believe that bringing real estate on chain is one of the most important uses of blockchain, delivering durable real world returns to the crypto ecosystem, bringing liquidity to a large, illiquid asset class, and, importantly, aligning societal interests by enabling more people to own a bit of the world around them.

A GromaCoin is:

• a security, i.e. a share in the Groma Real Estate Trust
• represented on-chain as a fungible ERC-20-compatible token
• enhanced with smart contract logic that enables it to meet securities requirements, with additional functionality to allow for dividend payments, redemptions for real-time liquidity, and secondary market trading over time

Each GromaCoin represents an ownership share of the Groma Real Estate Trust, a REIT that owns and operates a diversified portfolio of real estate. Our model intentionally mirrors traditional, regulated, well-trodden real estate investment trust structures, but brings them on chain. This unlocks new functionality while operating within a clear regulatory framework.

GromaCoin is designed to improve existing systems in three major ways:

1. Stable Yield for Blockchain: The on-chain ecosystem holds ~$3T of value but lacks an asset that is stable, capable of producing competitive yields, and inflation-resistant. Real estate meets this trifecta well, providing a solid foundation on which to build a wide variety of applications.
2. Liquidity and Access for Real Estate: Real estate has long been a favorite investment of the wealthy and middle class alike, but it suffers from illiquidity and high barriers to entry. Tokenizing real estate improves both liquidity and access while creating the opportunity for incremental yield and utility.
3. Better Incentives for Society:  GromaCoin helps to solve problems of economic and political misalignment by creating a broad group of holders with a vested interest in the growth of a region. The downstream ramifications of renters becoming owners, and of homeowners owning stake in the city beyond just their plot of land, are significant and positive.

We envision a world in which on-chain investors can keep their holdings safe without sacrificing yield, in which real estate owners can get better yield and flexibility from their assets, and in which more people can own a bit of the world around them. 

GromaCoin is targeting a public launch in the first half of 2026. To be notified when it goes live, sign up for our mailing list here. To learn more about GromaCoin in detail, read on.

02 | Structure

What is a GromaCoin worth?

GromaCoin’s value is derived from the value of the assets held by the Groma Real Estate Trust. As a simplified example, the Groma Real Estate Trust might hold the following asset mix, viewed on a dollarized basis:

• $80M real estate
• $20M cash and equivalents

This results in a total value of the Groma Real Estate Trust of $100M. If there are 100M GromaCoins outstanding, GromaCoin’s price is therefore $1.

If the value of the real estate in the Groma Real Estate Trust appreciates by 10%, the total value in dollar terms increases to $108M. GromaCoin’s price is now $1.08. If investors buy $10M of GromaCoin directly, $10M of GromaCoin will be issued at current price, i.e. ~9.2M coins. The Groma Real Estate Trust’s cash balance increases by $10M. This purchase of new assets grows the ecosystem but is not dilutive to the per coin price because the new coins are minted at the current fair market value.

The Groma Real Estate Trust will then deploy the new $10M over time to acquire suitable properties, increasing real estate holdings but not changing total value: $10M of cash will be converted into $10M of properties.

The same process is true in reverse. If a holder wants to redeem (i.e. sell back) their GromaCoins, they can do so directly at the current coin price. If done directly, the Groma Real Estate Trust buys back the coins at the current coin value, reducing the current cash balance and also the number of coins outstanding. The Groma Real Estate Trust keeps sizable cash reserves to facilitate these redemptions, though there are certain limitations on total redemptions allowed in a given period for the ecosystem at large. Over time, we expect that secondary markets will be formed to create deeper liquidity, albeit at a price set by the open market.

This combination of direct issuance, redemption, and secondary markets creates useful constraints on GromaCoin pricing. The Groma Real Estate Trust is responsible for valuing each property quarterly; these valuations are validated by fact checks from third-party appraisers each quarter and by annual audits from our third-party auditor. Beyond these checks, the market acts as quality control. If the market believes GromaCoin’s value is overstated, fewer new GromaCoins will be purchased/issued and more will be redeemed, slowing the growth of the ecosystem. If the market believes that GromaCoin is undervalued, more will be purchased directly, fewer will be redeemed, and ecosystem growth will accelerate. GromaCoin direct pricing is designed to maximize accuracy, but healthy disagreement about the value of GromaCoin from the broader market, with on-chain access to data about the assets in our ecosystem, is the best long-term governor of credibility surrounding the value of a GromaCoin.

GromaCoin’s return structure

GromaCoin holders can realize returns via two channels: distributions and appreciation. 

Distributions
‍Distributions are paid quarterly out of the Groma Real Estate Trust’s income. At least 90% of its taxable income must be paid out to shareholders, and the rest can be held within the Groma Real Estate Trust as a cash buffer or reinvested into new assets. This income is calculated and paid out on a quarterly basis. As of Q4 2025, dividends have grown to 3% annually, with a target of 4-5% for 2026. 

‍Appreciation
‍Appreciation can occur based on changes in the value of the assets held by the Groma Real Estate Trust. Each quarter, net asset value (NAV) is re-assessed by a combination of Groma’s internal investment advisor and a third-party appraisal firm. GromaCoin has appreciated by 4% in 2025, with a target of ~5% in future years. Notably, appreciation can be realized by a holder either by selling their GromaCoin or borrowing against it to generate liquidity without a sale.

Real Estate Strategy

Groma deploys capital via two strategies: an index strategy to provide broad exposure to real estate, and a direct strategy to generate enhanced performance and control.

‍Index
‍Capital is initially deployed into VNQ and XLRE, two real estate ETF indices, providing instant, scalable, diversified, liquid exposure to real estate. While these ETF indices provide great flexibility, their return profiles underperform direct real estate. We expect this to be the minority of our holdings at any given time.

‍Direct
‍Groma delivers enhanced performance and consumer access with our direct strategy, a tech-driven rollup of small multifamily assets in key cities. As of the end of 2025, this direct strategy represented 95%+ of our holdings and is outperforming the index strategy by a significant margin. We expect this to be the majority of our holdings at any given time.

Permissions and Compliance

GromaCoin is an on-chain representation of a share in a real estate investment trust (REIT) and is therefore a security. This designation comes with a variety of constraints and advantages.

‍Constraints
‍The primary constraint from an investor perspective relative to non-security digital assets is the need for compliance with Know Your Customer/Anti-Money Laundering (KYC/AML) requirements. This means that, while GromaCoin is on track to be available to all investors regardless of accreditation status, and while the KYC/AML process is relatively low-friction, GromaCoin is not fully permissionless, which may be a meaningful constraint for a subset of investors.Complying with securities regulations, both in the US and in other relevant jurisdictions, also requires significant work on the part of Groma. While this is time-consuming for our team, it also ensures that investors have access to a robust set of disclosures regarding GromaCoin’s legal status and operations, most notably in the form of its offering memorandum.

‍Advantages
‍GromaCoin’s status as a security and its compliance with all applicable regulations also provide several advantages. Unlike many other digital assets, which often have opaque economics or ambiguous legal status, GromaCoin benefits from a clear regulatory environment and an extensive body of case law regarding the handling and treatment of shares in REITs. This provides valuable clarity for GromaCoin holders with regard to their legal and economic rights. It also unlocks participation by more conservative institutional investors who might shy away from investing in assets with less well-defined status, resulting in better liquidity and features for all investors.

Additionally, REITs enjoy material tax advantages. Provided they meet distribution requirements, REITs are generally not subject to taxes on most income at the corporate level and benefit significantly from depreciation and real estate tax law, making them more operationally competitive relative to other real estate investment vehicles. Depending on investor jurisdiction, some portion of REIT distributions will be treated as “return of capital" (which is generally not taxable), some portion will be treated as qualifying dividend income (which is generally taxed at a lower rate than ordinary income), and some portion will be treated and taxed as ordinary income. GromaCoin bakes this reporting in, allowing holders to benefit from these tax advantages in an operationally simplified fashion.

Technical Implementation

GromaCoin is designed on the ERC-3643 specification, essentially an ERC-20 token enhanced with the necessary smart contract functions to enable securities-law compliance. ERC-3643 tokens require certain compliance features to be embedded into the token, making GromaCoin a “permissive”, but not “permissionless”, asset. Wallets will need to be whitelisted after going through an efficient KYC/AML process.

By default, for users seeking an easy onboarding experience, GromaCoins will be custodied in a Groma-hosted wallet. However, users will be able to move their GromaCoins to any self-hosted wallet within the whitelist.

Groma is working with partners to enable support for lending, borrowing, and secondary market liquidity. Over time, we hope to work with third party ID-verification standards to enable broader whitelisted wallet support, increasing the flexibility and utility of GromaCoin.

You can view our contract specification here. 

03 | Value  

GromaCoin seeks to deliver three key benefits: durable value for on-chain holders, greater liquidity for real estate owners, and broader real estate ownership for society at large.

Stable Yield for Blockchain

As the digital asset ecosystem matures, focus is shifting away from short-term speculation and towards stability and sustainable yield. GromaCoin is designed to provide both. 

GromaCoin targets an all-in yield of 8-10%, with roughly half from dividends and half from appreciation. As stablecoin yields trend down in line with interest rates, GromaCoin presents an opportunity for greater yields driven by real world productive assets.

GromaCoin also provides the following advantages:

1. Inflation Resistance: Unlike dollar-denominated assets, e.g. tokenized cash and treasuries, GromaCoin’s value is resistant to inflation. Real estate has long been an effective inflation hedge; to the degree that on-chain investors are sensitive to inflationary concerns, GromaCoin is an option worth considering.
2. Tax Advantage: As discussed above, US investors, and potentially others, may be able to receive tax-advantaged distributions from GromaCoin. This means that the after-tax value of these distributions will often be greater than their nominal yield, especially for high-tax investors. To quantify this, for an investor paying marginal tax rates of 37%, a 4% GromaCoin distribution might be equivalent to a treasury yield, taxed at normal income rates, of 6.35%.
3. Utility as Collateral: Real estate is one of the best collateral sources in the traditional financial system, and that’s despite its illiquidity and lack of composability. We expect that making real estate liquid, fungible, and composable on chain will provide an even better collateral asset for the many borrowing/lending applications that exist in this space.

Liquidity and Access for Real Estate

Homeownership has long been the backbone of middle class wealth, but it has a number of meaningful drawbacks:

1. High Barriers to Entry: Even with generous government mortgage incentives, down payments are prohibitively expensive for many first-time buyers, preventing renters from making the jump into homeownership.
2. Lack of Diversification: Making a six-figure, 80-90% leveraged bet on a single, non-diversified asset is arguably not an optimal investment strategy. This is especially true when the value of that asset is correlated with the strength of the local job market.
3. Illiquidity: The process of selling a home or borrowing against real estate assets typically takes months from end to end and entails large transaction fees and significant logistical challenges.

GromaCoin aims to address all of these shortcomings, providing liquid, diversified exposure to institutional-grade real estate with minimal barriers to entry and a differentiated real estate and on-chain strategy that enhances the overall return profile.

While public REITs solve some of these challenges, they do not allow for composability, which unlocks novel financial solutions. One simple example is the ability to borrow against shares flexibly versus selling them. This is available for larger holders of public REITs ($100K+), but not for everyday holders. On-chain lending and borrowing democratizes this useful function down to a level accessible to anyone.

Beyond borrowing, on-chain composability allows for the development of new financial instruments built on GromaCoin. While we predict that developers will find many novel uses for GromaCoin beyond those we anticipate, we expect that its most relevant early use case will be rentvesting, a financial tool we’re building to enable renters to convert monthly rent payments into leveraged ownership of GromaCoins.

While rentvesting, the renter invests their monthly rent payment into GromaCoin before paying rent. In exchange, Groma covers their rent for as long as the renter holds those coins. The renter can repeat this process each month and hold their coins for as long as they want. When they sell, Groma is paid back for the covered rent, and any growth is the renter’s to keep.

This is designed to be a no-brainer for renters: if the value of the real estate goes up, they get 100% of the increase; if it stays flat or goes down, they’re no worse off than if they had just rented. And for Groma, banks, cities, and society at large, it has the potential to be transformative.

Better Incentives for Society

There are 100M renters in the United States, spending $650B each year on rent. If even a fraction of them–and once word gets out, we expect it to be a large fraction–enroll in rentvesting, it will be transformative for them, for Groma, and for the political/economic structure of cities. 

Renters get a durable source of wealth that grows with the value of real estate in their cities. Rent stops being a pure liability and becomes a core part of their long-term investment strategy. Young professionals get an accelerated path towards a down payment, while older renters get a boost to their retirement savings.

Groma gets an untapped source of growth capital, turning rent from just an income stream into an investment in our ecosystem and an income stream (investment from renter + income from the capital borrowed against that asset). It’s great for our bottom line and also for our relationship with our renters–we’re not just providing them a service for a fee, we’re in business together with them. When they do well, we do well.

Cities get aligned incentives. Rentvesting turns a class of tens of millions of renters without an ownership stake in their cities into one with a concrete financial reason to support economic growth. If you own a part of thousands of apartments around your city, you’ll be less likely to support negative-sum policies like rent control or NIMBYism and more likely to support policies that enable economic growth, much of which will be capitalized into higher property values. 

And for institutional holders, family offices, on-chain treasuries, and the like, GromaCoin can provide compelling risk-adjusted returns while providing an aligned stake in regional growth. More people holding more interest in broader swathes of the world around them is not only beneficial to them from a diversification standpoint, but also to society by aligning interests more effectively.

04 | Launch

GromaCoin is the real estate coin. Our mission is to enable everyone to own a bit of the world around them. We’re accomplishing this by making quality real estate accessible on chain, blending the durability of real estate returns with the composability of blockchain.

GromaCoin is already live in beta, with over $100M of assets in the ecosystem. We’re launching out of beta in the first half 2026, and we hope you’ll consider becoming part of our ecosystem. To learn more follow us on X and we’ll keep you in the loop as we head towards public launch.