Fort Collins church turns to blockchain in bid to buy building

DENVER (KDVR) — A new project is hoping to use the blockchain to entice investors in a bid to buy the oldest church still standing in Fort Collins.

The project initially aims to buy the church building on Remington and East Magnolia streets for $2.3 million so it can be rented out and used by organizations in the community like the Colorado House of Prayer, which is its current main tenant.

This reportedly will be through a process called “tokenization,” essentially where shares of the church are offered on the blockchain for investors to buy.

Blockchains record cryptocurrency transactions in encrypted, digital records that live on servers all around the world, as The Associated Press explains . While blockchain platforms are used by cryptocurrencies like Bitcoin, the church offering is not for crypto but for “tokens” of ownership recorded on the blockchain.

“To have hundreds of people in an ownership group through the traditional process is nearly impossible. Now through tokenization, 2000 people can come together to own something like the Old Stone Church,” the project website reads .

The investment in the church would be through the company REtokens , which is a company that tokenizes real estate assets.

Who can buy tokens for this Fort Collins church?

Right now, shares are only open to accredited investors and not the general public. The minimum investment at this stage is $50,000, with 5,000 shares up for grabs at $500 a piece.

This first phase is so that the building can be bought from the current owner, according to the project website . The plan after that is to hold the building for a year before shares can begin to be sold on the secondary market.

These shares, called “Stone Tokens” on the project website, will then be offered to the general public, with investors needing to buy at least three tokens at a time for an investment of about $1,500. The $500 base value for one token will be tied to the building’s value and will be reassessed annually.

The plan is to ultimately have these stone tokens be sold and purchased by investors “until Jesus returns or until the majority of investors and the board deem it necessary to sell the building.”

The project website said the main goal of the company is not profit but is instead “service to the community.”

This church claims it’s the first church property to be tokenized in the U.S.

For the latest news, weather, sports, and streaming video, head to FOX31 Denver.