OFA Group Announces $15 Million RWA Tokenization Agreement for $1 Billion Long Island City Development

OFA Group (NASDAQ: OFAL) executed a Real World Asset tokenization services agreement to support a Long Island City mixed-use redevelopment with an estimated stabilized value of $1 billion.

Rhea-AI Summary

OFA Group (NASDAQ: OFAL) executed a Real World Asset tokenization services agreement to support a Long Island City mixed-use redevelopment with an estimated stabilized value of $1 billion. OFA will provide Hearth platform technology and receive a contractually secured $15 million platform fee, payable in milestone-based installments; the company has received the first payment.

The engagement covers token design, smart contracts, registry infrastructure, and compliance-enabled features; OFA's role is limited to technology services and not securities issuance, fundraising, custody, or investor solicitation.

Positive

• $15 million contracted platform fee, secured under signed agreement
• Received first payment under the milestone schedule
• Participation in a $1 billion Long Island City development
• Contract specifies fee is not contingent on capital raising or token sales

Negative

• Role limited to technology; OFA will not handle fundraising or custody
• Revenue tied to milestone delivery, creating execution timing risk

Argus Apr 6 session

-22.90% close to close Open Argus

Details

News Market Reaction – OFAL

On Apr 6, the day this news came out, OFAL closed 22.90% below the previous close.

Data tracked by StockTitan Argus for the Apr 6 session.

Key Figures

Platform technology fee: $15 million Project stabilized value: $1 billion Registered resale shares: 35,000,000 shares +5 more

Platform technology fee

$15 million

Contracted Hearth RWA tokenization services for Long Island City project

Project stabilized value

$1 billion

Estimated stabilized value of Long Island City mixed-use development

Registered resale shares

35,000,000 shares

Class A Ordinary Shares issuable upon conversion of Series A Preferred (Form F-1/A 2026-03-19)

PIPE stated value

$50,000,000

Aggregate stated value of PIPE/Preferred facility in Form F-1/A (2026-03-19)

Registered resale shares

23,000,000 shares

Class A Ordinary Shares registered for resale (Form F-1/A 2026-03-09)

Equity facility size

$100,000,000

Potential gross proceeds from equity facility with Atsion (Form F-1/A 2026-03-09)

Greentree ownership

5.88%

Beneficial ownership of 837,000 Class A shares (Schedule 13G 2026-02-27)

Registered resale shares

up to 35,000,000 shares

Resale registration tied to Series A Convertible Preferred (Form F-1/A 2026-03-19)

Historical Context

5 past events · Latest: Feb 02

5 events

1. Feb 02

   Hearth in production

   24h Move

   +10.5%

   Confirmed Hearth platform live and supporting real-world asset strategies.

2. Jan 26

   Hearth scope clarification

   24h Move

   -5.8%

   Clarified Hearth as non-custodial, technology-only infrastructure without brokerage roles.

3. Jan 26

   Hearth platform launch

   24h Move

   +4.6%

   Launched Hearth RWA tokenization platform for institutional-grade asset offerings.

4. Jan 15

   QikBIM deployment

   24h Move

   -3.1%

   Announced commercial deployment of QikBIM AI BIM automation platform.

5. Dec 30

   AI platforms launch plan

   24h Move

   +12.7%

   Confirmed January 2026 commercial launches for QikBIM and RWA platform.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

real world asset, tokenization, blockchain-based, smart contracts, +4 more

8 terms

real world asset technical

"announced the execution of a Real World Asset (RWA) tokenization service agreement"

A real world asset is a tangible item or conventional financial claim that has value outside of digital markets — for example property, commodities, art, or loans — which can be represented and traded in financial markets. It matters to investors because converting these assets into tradable shares or digital representations can increase liquidity, let more people own small pieces, and provide diversification or inflation protection, much like turning a whole house into many small, saleable shares.

tokenization technical

"Real World Asset (RWA) tokenization service agreement through its proprietary Hearth RWA Tokenization Platform"

Tokenization is the process of converting real-world assets or rights into digital tokens stored on a computer network. This allows assets, such as property or investments, to be divided into smaller parts, making them easier to buy, sell, or transfer electronically. For investors, tokenization can increase access to a wider range of investments and make transactions faster and more efficient.

blockchain-based technical

"will provide end-to-end blockchain-based tokenization infrastructure for the project"

"Blockchain-based" describes systems or technologies that rely on a digital ledger shared across many computers to record and verify transactions securely and transparently. Imagine a shared spreadsheet that everyone can see and update, but once a change is made, it cannot be altered without everyone’s agreement. This approach helps ensure trust and security without needing a central authority, which can be important for investors seeking reliable and tamper-proof record-keeping.

smart contracts technical

"aligned with platform deployment and smart contract integration phases"

Self-executing digital agreements whose terms are written as code and stored on a distributed ledger so they run automatically when preset conditions are met — like a vending machine that releases a snack only after you insert the right coins. Investors care because smart contracts can speed up transactions, cut middlemen, reduce errors and fraud, and create new ways to issue, trade or enforce financial assets, which affects costs, risk and regulatory oversight.

View in glossary

digital tokens technical

"Digital tokens created under the platform are intended to represent interests"

Digital tokens are unique digital items recorded on a shared electronic ledger that represent value, rights, or access—like a digital ticket, coupon, or share that you can hold and transfer. They matter to investors because tokens can represent tradable assets or claims (for example ownership, a right to use a service, or a share of future revenue), so their price can change with demand, platform trust, and regulation, offering potential gains but also significant risks.

special purpose vehicle (SPV) financial

"represent interests in a designated special purpose vehicle (SPV) associated with the project"

A special purpose vehicle (SPV) is a separate legal entity created to hold specific assets, liabilities or financial activities apart from a company’s main business—think of it like a sealed box where certain deals or risks are kept. Investors care because an SPV isolates risk and can be used to raise money, structure investments, or limit losses; however, it can also hide obligations or complicate transparency, so understanding what’s inside the “box” matters for assessing true financial health.

broker-dealer regulatory

"OFA does not act as an issuer, broker-dealer, placement agent, investment adviser, or exchange operator"

A broker-dealer is a licensed firm or individual that both executes trades on behalf of clients (acting as a broker) and buys or sells securities for its own account (acting as a dealer). Investors care because broker-dealers provide the plumbing of markets — they place orders, hold or move cash and securities, offer research or advice, and their stability and fees directly affect trade execution, costs, and the safety of client funds; think of them as a combined travel agent and taxi for your investments.

investment adviser regulatory

"does not act as an issuer, broker-dealer, placement agent, investment adviser, or exchange operator"

An investment adviser is a person or firm that professionally manages money and gives recommendations about buying, selling, or holding investments. Like a financial coach or guide, they have a legal duty to act in a client's best financial interest, so their advice, fees and potential conflicts can directly affect returns and risk — making their role important for investors who want informed, accountable help with portfolios.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Rolling Hills, California, April 06, 2026 (GLOBE NEWSWIRE) -- OFA Group, Inc. (NASDAQ: OFAL) (“OFA” or the “Company”), a technology-driven architecture, real estate, and digital asset infrastructure company, today announced the execution of a Real World Asset (RWA) tokenization service agreement through its proprietary Hearth RWA Tokenization Platform with MD Queens Development LLC.

The agreement relates to a major mixed-use development project located in Long Island City, New York, with an estimated stabilized value of approximately $1 billion. The project involves the redevelopment of an existing warehouse site into a premier residential and commercial tower.

Contracted Platform Revenue

Under the terms of the agreement, OFA will provide end-to-end blockchain-based tokenization infrastructure for the project and will receive a total platform technology fee of $15 million.
The fee:

• Is contractually secured under a signed agreement
• Is not contingent upon capital raising, token sales, or investment performance
• Represents compensation solely for technology and infrastructure services
  

The payment is structured in milestone-based installments aligned with platform deployment and smart contract integration phases.

This engagement provides near-term revenue visibility and reflects the Company’s ability to monetize its RWA infrastructure platform through institutional-grade projects.

The Company has received the first payment in accordance with the terms of the agreement.

Project and Tokenization Structure

The Long Island City project is expected to undergo tokenization at the pre-development stage, enabling early-stage capital structuring through blockchain-based infrastructure.

Digital tokens created under the platform are intended to represent interests in a designated special purpose vehicle (SPV) associated with the project, rather than direct ownership of the underlying real estate asset.

Scope of Services

Through its Hearth platform, OFA will provide a comprehensive suite of technology services, including:

• Design and creation of digital tokens
• Development and deployment of smart contracts
• Digital asset registry infrastructure
• Integration of project-related documentation
• Compliance-enabled technical features, including transfer restrictions and identity verification frameworks
  

The Company’s role is strictly limited to providing technology infrastructure. OFA does not act as an issuer, broker-dealer, placement agent, investment adviser, or exchange operator, and does not participate in investor solicitation, fundraising, or custody of funds or tokens.

All securities law compliance, offering structure, and investor-related activities remain the sole responsibility of the client and its advisors.

Strategic Significance

This agreement represents a meaningful step in the commercialization of OFA’s RWA platform and highlights increasing institutional interest in integrating blockchain-based infrastructure into large-scale real estate development.

By engaging at the pre-development phase, the Company is positioned to support next-generation capital formation models while maintaining a clear, compliance-focused role as a technology provider.

Management Commentary

Larry Wong, CEO of OFA Group, commented:

“This agreement reflects continued progress in the adoption of blockchain infrastructure for real-world assets. We are pleased to support a project of this scale and to demonstrate how our Hearth platform can deliver secure, compliant, and scalable tokenization solutions for institutional-grade developments.”

About OFA Group, Inc.

OFA Group, Inc. (NASDAQ: OFAL) is a technology-driven architecture, real estate, and digital asset infrastructure company operating at the intersection of AI, construction, and blockchain.

Through its Hearth platform, OFA provides non-custodial real world asset tokenization infrastructure, enabling compliant digital asset representation for institutional-grade projects while maintaining a strictly technology-focused role.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding expected project value, anticipated platform deployment, and potential future revenue. These statements are subject to risks and uncertainties, including regulatory developments, project execution risks, and market conditions. Actual results may differ materially from those expressed or implied.

Contact

Investor Relations
OFA Group
Email: info@ofacorp.com
Website: www.ofacorp.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did OFAL announce about the Long Island City $1 billion project on April 6, 2026?

OFA announced a tokenization services agreement for a Long Island City redevelopment valued at $1 billion. According to the company, the engagement uses the Hearth platform to create tokens and smart contracts representing SPV interests, with services paid via a secured $15 million fee.

How much will OFAL receive for providing Hearth platform services to the Long Island City development?

OFA will receive a total platform technology fee of $15 million for the engagement. According to the company, the fee is contractually secured, not contingent on token sales, and is payable in milestone-based installments aligned with deployment phases.

Has OFAL received any payment under the $15 million tokenization agreement?

Yes, OFA has received the first payment under the agreement. According to the company, initial milestone-based consideration has been paid, providing near-term revenue visibility tied to platform deployment and smart contract integration phases.

What services will OFAL provide via the Hearth platform for the OFAL tokenization project?

OFA will provide token design, smart contract development, digital registry, and compliance-enabled infrastructure. According to the company, services include transfer restrictions and identity frameworks while client advisors handle securities compliance and fundraising.

Will OFAL act as the issuer or manage investor fundraising for the tokenized Long Island City project?

No, OFA will not act as issuer, broker-dealer, placement agent, or manage fundraising or custody. According to the company, its role is strictly technology infrastructure and all offering and investor activities remain the client's responsibility.