Manhattan property worth $30 million, tokenised with blockchain
A new condo development in the heart of Manhattan is set to become the first to be tokenised via the Ethereum blockchain. The unit consists of 12 units, each at 1700sq ft, located in 436 & 442 13th St in the East Village, one of the most sought-after areas in the city.
Listed by Ryan Serhant, a celebrity real estate agent, he and the developer decided to turn to tokenisation as a new way of financing the project. This could pave the way for other projects to follow suit as well as offering a better alternative for both the project and the investors.
“The market in New York is always strong, but it can take some time to sell for the right price in a new construction building. 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,” Serhant said.
Tokenisation is a way of representing ownership of a product or asset in a digital way on the blockchain. This new way of financing is the result of a collaboration between Fluidity and Propellr, two businesses that have come together to offer fully compliant services that enable the creation, distribution, and transfer of digital securities.
Todd Lippiatt, CEO of Propellr stated;
“Traditional securities structures and issuance frameworks haven’t evolved in a long time. 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.”
Propellr is a management, creation, and servicing platform for digitally held assets and it is also the parent company of a FINRA registered broker/dealer called Propellr Securities. Their aim is to use their financial and capital market experience to both offers and sell tokenised securities under the Reg D Rue 506 (C).
Fluidity is the company behind AirSwap which offers technology services to broker/dealers, financial institutions, and issuers for tokenised securities. The partnership between Fluidity and Propellr means that they can now accept fiat payments as well as both solicit and sell securities in line with the law.
Investors in the project are able to choose between receiving analogue or digital assets in the securities which means that all kinds of investor are covered. AirSwap technology will also be utilised the process, as well as tokenising securities and helping a fully compliant secondary market to emerge.
“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,” Don Mosites, co-founder of Fluidity, stated.
E&S Group recently became the first business of its type to tokenise its services– this is also something we can help you do. Whether you want to tokenise your products and offerings or tokenise an asset such as property, our team of experts can guide you through the process, so get in touch by sending us an email at [email protected]