Magnate Club, Ava Labs partner to bring tokenized realty to web3 financiers

As blockchain technology continues to reshape global financing, a new frontier is emerging: tokenized real estate. Magnate Club (stylized as magnate Club)– a platform founded by former Goldman Sachs property professionals– is taking a vibrant action in that direction with the launch of Clubs, on-chain, community-powered investment groups designed to democratize access to premium, income-generating homes.

Among the first major collaborations? A partnership with Ava Labs to introduce the Avalanche Club, a property syndication effort constructed for the Web3 community. Through this alliance, developers and users in the Avalanche community can now invest and pool resources in institutional-grade properties using stablecoins and digital assets– no intermediaries required.

To understand how the startup is turning tokenized real estate from concept to execution, crypto.news caught up with co-founder Alex Blackwood.

What was the original vision behind mogul Club, and how has it evolved with the introduction of Clubs?

Our original vision behind mogul Club was to democratize premium realty, traditionally one of the most powerful vehicles for long-term wealth creation, through fractional ownership. Historically, access to institutional-grade property deals has been limited due to high capital minimums, exclusive networks, and knowledge barriers. We aimed to dismantle these barriers by enabling everyday investors and high-net-worth individuals alike to invest fractionally in professionally managed, cash-flowing blue-chip properties. With the introduction of Clubs, our vision has expanded from individual access to fostering community-powered investing. Now, groups such as friends, families, alumni networks, and others can learn and earn together while investing in real estate. Clubs bring a collective, social dimension to mogul, empowering communities to build wealth collectively and purposefully.

What problems are you solving that traditional platforms do not address?

Clubs represent a fundamental reimagining of the traditional real estate investing model, tailored specifically for a digitally native and community-oriented generation. Traditional investing has typically been exclusive, opaque, and reliant on institutional gatekeepers. Clubs reverse this paradigm by creating a transparent, grassroots-driven approach powered by collective goals and shared values. Magnate aims to lead community-led capital growth by enabling groups such as crypto ecosystems, alumni networks, and others to form or join Clubs aligned with their specific interests. Additionally, as Clubs evolve, we are developing premium, tailored features designed to meet the investing needs of community organizers and members.

What is your revenue model?

Magnate currently generates revenue through fees structured around our fractional investments. We have a 3% onboarding fee and a 2% setup fee, both capitalized into the transaction based on the purchase price of the property. These fees cover expenses related to finding, vetting, and onboarding properties. In addition, we collect 2.5% of the rental income to handle coordination with property managers and to leverage institutional-level discounts. Importantly, this 2.5% minimally impacts returns and aligns our incentives closely with investors– we do not collect this fee unless investors receive returns. All returns projected on our platform, including IRR estimates, are presented net of these fees.

How do you ensure liquidity for investors in tokenized real estate assets?

Mogul plans to introduce secondary liquidity options by Q2 2026. Until then, investor liquidity primarily occurs when properties are sold. In the meantime, investors benefit from real-time appreciation of their investment, monthly dividends distributed directly to their account, and tax advantages.

Are there any regulatory safeguards in place, particularly around tokenized securities?

Magnate operates as an investment club and not as a regulated security, so traditional securities regulations do not apply. We conduct robust Know Your Client (KYC) processes to ensure compliance with relevant laws and regulations related to identity verification and anti-money laundering. Additionally, our platform is built on Avalanche (AVAX) blockchain technology, utilizing Snowtrace for transparency, and we employ Fireblocks to securely store users’ keys and wallets. Fireblocks implement stringent security protocols and measures, including secure custody and robust key management, to safeguard digital assets and ensure their secure transfer and storage. Crucially, investors’ capital is placed directly into the property-owning PropCo LLCs, which means their investments are fully protected even if mogul were to experience operational disruptions.