OFA partners with Blockchain App Factory to develop real estate RWA platform

LOS ANGELES - OFA Group, Inc. (NASDAQ:OFAL), a micro-cap company with a market value of $18.66 million and currently trading at $1.33, announced Wednesday it has signed a strategic cooperation agreement with Blockchain App Factory to develop a real estate equity and mortgage-backed Real World Assets (RWA) platform. According to InvestingPro data, the company has seen its stock decline over 71% year-to-date, reflecting investors’ concerns about its ambitious expansion plans.

According to the company’s press release, the platform will tokenize real estate equity and mortgage assets, allowing them to be fractionalized and traded on blockchain technology. The project is expected to deliver a minimum viable product within four months. This timeline appears ambitious given the company’s current financial position - InvestingPro analysis shows OFAL operating with quarterly revenue of just $0.2 million and negative earnings per share of $0.08.

The planned platform will include features such as tokenization through Special Purpose Vehicles (SPVs), institutional-grade onboarding with KYC/AML compliance, AI-powered valuation tools, and Web3-enabled trading infrastructure.

"The convergence of real-world assets, AI, and Web3 technology is reshaping the global financial landscape," said CEO Larry Wong in the statement.

OFA also mentioned plans to establish a $100 million cryptocurrency treasury, initially focused on Bitcoin and Ethereum, with potential expansion into other digital assets and Web3 infrastructure projects. This represents an ambitious goal for a company that InvestingPro analysis indicates is currently operating with moderate debt levels and negative free cash flow. InvestingPro subscribers can access 6 additional key insights about OFAL’s financial health and market position.

OFA Group, through its subsidiary Office for Fine Architecture Limited, provides architectural services for commercial and residential buildings. The company states it is developing proprietary AI technologies to enhance its architectural design services.

Blockchain App Factory specializes in tokenization, DeFi, NFTs, and enterprise-grade blockchain infrastructure development.

The announcement notes that any future securities offerings on the platform would be accompanied by approved offering documents with legally required disclosures.

In other recent news, OFA Group has made several strategic announcements that could impact its future operations. The company recently launched the QikBIM platform, developed with Alan To AI Consultancy Co., which allows architectural firms to generate building information modeling models from basic plans and layouts. In a significant move, OFA Group has also entered into a joint venture with Next Investments LLC to develop a senior care facility, where OFA will provide capital and architectural services while Next Investments will manage the property. Additionally, the company has implemented a Digital Asset Strategy to streamline senior housing development using blockchain technology, enhancing transparency and reducing administrative hurdles.

OFA Group will now accept cryptocurrency payments for its architectural services, supporting Bitcoin, Ethereum, Solana, and other cryptocurrencies with secure transaction protocols. The company has also launched a $100 million digital asset treasury initiative managed by Bitwise Asset Management, aiming to integrate cryptocurrency into its balance sheet for yield generation and operational growth. These recent developments highlight OFA Group’s commitment to integrating advanced technology and financial strategies into its business model.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.