TangibleRWA - Executive Brief

Overview

Tangible aimed to merge tokenized real estate with DeFi through property-backed assets and a partially collateralized stablecoin, USDR. Strong early interest demonstrated market appetite, but a combination of strategic and liquidity challenges led to a structured wind-down beginning in 2025.

Key Strategic Decision

In 2024, Tangible secured short-term loans against its UK property portfolio to accelerate USDR buybacks and reduce supply. While intended to restore confidence, the strategy depended on:

• timely property sales,

• stable market conditions,

• and lender cooperation.

This created a narrow liquidity path with limited flexibility.

Turning Point

Property sales progressed more slowly than expected. The lender declined a requested extension—partly influenced by external inquiries from some USDR holders—and exercised first-charge rights. As a result, most properties were moved to quick-sale auctions, reducing potential recovery values.

Infrastructure Event

In July 2025, the re.al chain halted, affecting redemptions and treasury movement. Tangible transitioned balances off-chain and shifted redemption mechanics to Polygon.

Wind-Down Plan

Final USDR redemption values will be based on:

1. net auction proceeds,

2. unspent mortgage liquidity, and

3. remaining maintenance reserves.

Redemptions will reopen on Polygon following the lender’s final settlement.

Business Insights

• Asset–liability alignment is critical; short-term debt on long-duration assets introduces timing risk.

• Liquidity strategies should preserve optionality, not rely on ideal market conditions.

• Stakeholder governance needs clear communication boundaries in sensitive negotiations.

• Infrastructure reliability is a business dependency in blockchain-integrated models.

• Scenario planning must account for slower sales, pricing variance, refinancing risk, and technical disruptions.

  
  

Conclusion

Tangible’s experience illustrates how strategic choices, real-estate liquidity constraints, stakeholder dynamics, and infrastructure risks shape outcomes in RWA businesses. For the broader tokenized real-estate sector, this case provides practical lessons in designing resilient models that bridge on-chain and real-world domains.