Business model, budget, timetable and a model business plan

In my business, a real estate project is judged first by its developer’s appraisal. The price of the land, the cost of the works, the fees, the financing costs, the exit price, and the margin left when everything has been paid. The finest architect’s renderings do not survive a loss-making appraisal. An RWA project obeys the same discipline. One must know where the revenue will come from, how much building the business will cost, how long it will take to break even, and what capital will be needed to get through that period.

A word of caution first. Tokenisation providers rarely publish their prices, and costs vary widely by jurisdiction, asset and choice of structure. I therefore distinguish carefully between what is established, such as legal thresholds or prices actually published, what belongs to market estimates, and the model business plan presented further on, which rests entirely on assumptions each reader will adapt to their own situation.

Where revenue comes from

Companies in the RWA ecosystem combine several sources of revenue, depending on their role.