There's a new way to afford a horse in Dubai with blockchain tech
It's called tokenisation and the concept is becoming popular in the property sector. Those who can't afford it, or don't want to, invest in a whole villa or penthouse apartment can now own a share of it via tokenisation. And the idea has found its way into other expensive assets like racehorses.
One of the emerging players in racehorse tokenisation is a company called Tokinvest. It is launching a new racehorse tokenisation scheme that is built on blockchain technology. Most people associate blockchain with cryptocurrencies, but the technology can do so much more.
Matt Blom, co-founder and chief strategy officer at Tokinvest, said he expects people will be able to invest in racehorse tokens starting from around Dh1,000. 'It's all about giving people access to the economic performance of the horse without needing to own it outright. The token represents fractional exposure to the costs and potential rewards of training and managing a racehorse over a one-year term.'
With your token, you own a stake in a basket of professionally selected racehorses for one racing season, thereby spreading your chances of success. If a horse in the basket performs well or is sold, investors may receive a payout. Tokinvest said the full structure will be detailed in its whitepaper before launch.
It's all about giving people access to the economic performance of the horse without needing to own it outright'
Matt Blom, Co-Founder And Cso At Tokinvest
UAE-regulated Tokinvest partnered with a New Zealand-based tokenisation firm called DSG Group to launch the investment opportunity. Ryan Johnson-Hunt, co-founder and CEO of DSG Group, said: 'Racehorse ownership is just the beginning – together, we're unlocking new asset classes and expanding access to investment opportunities that were previously out of reach for most investors.'
Under this scheme, investors don't actually own a piece of the horse. Instead, they get access to potential economic upside during the season. 'It's more like being part of a performance-linked fund than owning the horse directly. We're also exploring ways to offer race-day updates and exclusive content as part of the utility in future versions,' Blom explained.
Syndicates
Purchasing a racehorse outright can range from tens of thousands to several million dollars, depending on the horse's pedigree, training, and racing history. This high entry level led to the creation of syndicates. In this arrangement, multiple individuals share ownership of a horse, dividing expenses and potential returns. One such company based in the UAE is called Racing Life Dubai, which pools together racehorse investors and says it only selects 'racehorses with genuine winning potential, offering members the thrill of competing at the highest level while enjoying the rewards of success'.
Ownership extends beyond the track, and members gain access to an exclusive circle, enjoying VIP privileges at Meydan, private invitations to premier events, access to the Winner's Circle restaurant, and trackside experiences. But the starting price for investment is much higher than for tokenisation. Racing Life Dubai offers shares starting at £5,000 (Dh24,000) for a five per cent stake in a young horse with promising potential. A five per cent stake means up to 20 people can own one horse. Racing Life Dubai's top trainer is Bhupat Seemar, who trained Dubai World Cup-winner Laurel River last year. Another popular racehorse ownership provider is UK-based Deva Racing.
Tokenisation
With tokenisation, the entry costs are much lower compared to sole ownership and syndicates. But your token represents a much smaller share of the horse. Depending on the fund, hundreds of people could hold a share in the same group of horses, as in Tokinvest's case.
Generally, the token price covers standard things like training, stabling and day-to-day care. Most of the net proceeds – after costs and fees – will go to the investors. One of the benefits of the blockchain is transparency, as transactions can be viewed by anyone so you have a better idea of where the money is going. Another benefit of racehorse tokenisation is liquidity – it's much easier to buy, sell and trade tokens compared to owning shares via a syndicate.
Australia-based BTX Racing enables investors to purchase micro-shares in a racehorse, making ownership accessible to a broader audience. Steve Piek, CEO and founder of BTX, said: 'We were the first company globally to offer a fully regulated racehorse ownership based on a blockchain. Our minimum investment is $75 (Dh275) and will open up to international owners shortly. We aim to be in the Middle East soon.' Piek said he was passionate about creating new ownership models and experiences for horse ownership, using blockchain technology and decentralised systems.
The Middle East has a very rich and long history of racehorses that is ingrained in the culture. The Dubai World Cup has grown into one of the richest and most prestigious events in the global horse racing calendar. This year, it will feature nine world-class races with a total prize pool of $30.5 million (more than Dh100 million).
Fan engagement
Tokenised ownership of racehorses is relatively new, and companies are still developing their offerings. Owning a racehorse outright comes with privileges like access to race days and paddocks. Owning a token or a fraction of a racehorse doesn't guarantee the same perks. But providers are looking at ways of offering them in the future.
Platforms like The Winners Circle, powered by Zilliqa, use the blockchain to improve fan engagement by offering digital tokens that provide voting rights, and access to exclusive content. It says it is helping to bridge the gap between the physical and digital realms of horse racing.
NFTs
You may have heard of non-fungible tokens (NFTs) before, especially when it comes to art. They are like a digital collectible or receipt that proves you own a one-of-a-kind item on the Internet, stored securely using blockchain technology. When you own a fraction of a racehorse you could also turn it into an NFT.
We're unlocking new asset classes and expanding access to investment opportunities that were previously out of reach for most investors'
Ryan Johnson-Hunt, Co-Founder And Ceo Of Dsg Group
Maxima is a racehorse exchange platform that offers an NFT marketplace where it says anyone can own horses and earn. While most NFTs are purely based on a digital asset, Maxima's NFTs are based on real-world assets – the horses themselves.
'All racehorses are backed by physical counterparts and share-owners can gain access to a transparent account of a horse's history. Every sale on the exchange is recorded on the blockchain and the company assures buyers that the data is publicly accessible for great price transparency, without hidden fees,' it said. NFT owners can benefit from the appreciation of prices when horses win races, royalty payments to creators each time their shares are purchased, and tournament bonuses for the best performers. When it comes to the various options for ownership, there's no more horsing around.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
3 hours ago
- Khaleej Times
Bangladeshi expat in Dubai wins Dh20-million prize in Big Ticket Draw
As the 3rd of the month arrived yet again, UAE residents awaited Big Ticket's grand prize announcement, hoping to become a millionaire. On August 3, Sabuj, a Bangladeshi expat in Dubai, won a Dh20-million prize, with ticket number 194560, in the Big Ticket Series 277 draw. Meanwhile, six winners also took home Dh50,000 each in consolation prizes. Four lucky individuals also took home prizes up to Dh150,000 each after spinning the 'Big Win' wheel. Last month, a 43-year-old Bangladeshi electrician called Mohammed Naser Balal was named the lucky winner of a whopping Dh25 million in Big Ticket's draw. August promotions The raffle has previously announced the launch of its August grand promotion, with one lucky winner set to take home an incredible Dh15-million grand prize during the live draw on September 3. In addition to the grand prize, on the same night of the live draw, six winners will also receive consolation prizes of Dh100,000 each. Customers who buy two (or more) cash tickets in one transaction between August 1 and 25 will have a chance to be selected to attend the live draw on September 3 and win guaranteed cash prizes ranging from Dh50,000 to Dh150,000. The names of the four confirmed participants will be announced on the Big Ticket website on September 1. August's promotions are also offering a BMW M440i, with the winner to be announced on September 3. In addition, a Range Rover Velar will be given away on October 3.
Filipino Times
4 hours ago
- Filipino Times
OWWA e-Card printer to stay at MWO-Dubai even after Serbisyo Caravan
UAE-based OFWs who were unable to claim their e-Cards during the recent Serbisyo Caravan in Dubai will still be able to get their cards, as the Overseas Workers Welfare Administration (OWWA) will leave its card printer at the Migrant Workers Office (MWO). 'Huwag kayong mag-alala para sa OWWA dahil hindi lang ito isang araw lang sa Dubai. Iiwan na namin dito 'yung card printer para tuloy-tuloy lang ang pagpi-print ng OWWA e-Card dito sa Dubai,' OWWA Administrator Patricia Yvonne Caunan. Alongside the surge in National ID applications, the OWWA e-Card was among the most in-demand services during the OFW Serbisyo Caravan held at the Dubai World Trade Center on August 3. Active members of OWWA who wish to request an e-Card may complete their registration using a QR code provided by the agency. The QR code will remain available for those who missed the caravan. She added that eligible individuals can claim their e-Card anytime, even after the event. 'Anytime pwede niyong kunin, at kung hindi niyo makukuha today, kayo po ay cocontact-in ng mga tauhan ng OWWA dito sa Dubai,' she said. Thousands of attendees OWWA made the decision after thousands of Filipinos turned up at the one-day event, overwhelming the initial space at Exhibition Hall 8 of the Dubai World Trade Center and prompting organizers to expand the venue to Sheikh Rashid Hall. Caunan acknowledged the large turnout and emphasized the need for recurring caravans in the UAE. 'Hindi natin in-expect na ganito karami ang may kailangan ng serbisyo ng gobyerno dito sa Dubai. Hindi pwedeng isa o dalawang araw lang ito, kailangan ulit-ulitin ito dahil kailangan dito sa UAE dalhin ang serbisyo ng gobyerno,' Caunan said. The OWWA e-Card serves as proof of membership and can be used to access various government services and programs for overseas Filipinos.
The National
4 hours ago
- The National
Best photos of August 3: World Dog Surfing Championships to camels in China
A permit and licence is required to fly a drone legally in Dubai. Sanad Academy is the United Arab Emirate's first RPA (Remotely Piloted Aircraft) training and certification specialists endorsed by the Dubai Civil Aviation authority. It is responsible to train, test and certify drone operators and drones in UAE with DCAA Endorsement. 'We are teaching people how to fly in accordance with the laws of the UAE,' said Ahmad Al Hamadi, a trainer at Sanad. 'We can show how the aircraft work and how they are operated. They are relatively easy to use, but they need responsible pilots. 'Pilots have to be mature. They are given a map of where they can and can't fly in the UAE and we make these points clear in the lectures we give. 'You cannot fly a drone without registration under any circumstances.' Larger drones are harder to fly, and have a different response to location control. There are no brakes in the air, so the larger drones have more power. The Sanad Academy has a designated area to fly off the Al Ain Road near Skydive Dubai to show pilots how to fly responsibly. 'As UAS technology becomes mainstream, it is important to build wider awareness on how to integrate it into commerce and our personal lives,' said Major General Abdulla Khalifa Al Marri, Commander-in-Chief, Dubai Police. 'Operators must undergo proper training and certification to ensure safety and compliance. 'Dubai's airspace will undoubtedly experience increased traffic as UAS innovations become commonplace, the Forum allows commercial users to learn of best practice applications to implement UAS safely and legally, while benefitting a whole range of industries.'
