It’s the first of its kind. According to Forbes, a luxury condo development in Manhattan, which is valued at more than $30 million, will be tokenized on the worldwide Ethereum blockchain, making the luxury condo a tokenized real-world asset.
The building comprises of 12 units at 1700 sq ft each and is located on 436 & 442 E 13th St in Manhattans, East Village.
The listing broker on the deal is Ryan Serhant. He and the developer are looking to tokenization as a new method of financing. He says:
“With blockchain tokenization, we can remove the unruly pressure of traditional bank financing, which is much healthier for the project and all of the stakeholders. Tokenization is paving the way for a new forefront in real estate development.”
A Tokenized Real-World Asset
Tokenization on the Ethereum blockchain is made possible by two companies, Propellr and Fluidity. The pair has joined forces on this project. Digital assets on the blockchain will represent ownership of the condos.
“With blockchain technology, a transparent and trustless ecosystem can start to solve the information asymmetry that hinders the market’s potential for liquidity. This asset, structure, sponsor, and sales team showcase this evolution. With proper discipline and respect, the future is bright for tokenized securities,” says Todd Lippiatt, CEO of Propellr.
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Don Mosites, co-founder of Fluidity, said the following:
“Along with our flagship AirSwap, we’re building a system that brings local assets online using blockchain technology. This makes them available for trade on a global marketplace—directly among buyers and sellers. Fluidity is forming the foundation of a new system of tokenization and trade.”
How Does it Work?
Potential buyers will receive “either analogue or digital interests in the securities.” AirSwap technology will be used in the offering process, including “tokenizing the securities and allowing for a compliant secondary market to emerge.”
The liquidity of private securities can be improved because of the transparency of blockchain technology. Should this tokenized condo be a success, the same structure can be applied to a range of real-world assets.
Ethereum (ETH) is trading down currently -2.54%, according to CoinMarketCap.
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