A Blockchain startup has forged a partnership with a broker-dealer company with the aim to develop a tokenized real estate investment opportunity.
Fluidity and Propellr are set to provide tokens that represent shares in a multimillion-dollar block of condominiums in Manhattan, New York. The token gives the buyers an opportunity to invest as much or as little as they choose to.
Blockchain startup Fluidity co-founder Michael Oved is convinced that the Blockchain and smart contract technology can revolutionize the very foundation of real estate investment.
Based on a promotional video, which was posted on Bloomberg, for the joint initiative with broker-dealer Propellr, Oved has remarked about the inadequacies involved in purchasing property as an investment and how Blockchain tech can potentially resolve these issues. He states:
“When we started to look at the real estate industry, it’s probably one of the most inefficient industries that exists currently. A lot of middlemen, a lot of lawyers, a lot of bankers.”
The partnership aims to provide investors with an opportunity to acquire shares in a $36.5 million block of condos. Instead of just selling each of the 12 luxury apartments separately, the objective is to sell numerous tokenized shares to those who want to take part in Manhattan real estate. Said tokens will be released on top of a Blockchain giving way to intensified transparency, security, and efficiency than ever before.
Individuals behind the tokenization of the property sale believe that they can also repay the loan that gave way to its construction earlier. Ryan Serhant, one of the project’s real estate agents, explains:
“We have a bank deadline on us where we have to sell a certain amount of units or repay the entire loan by a certain date. If construction has been delayed, if the market turns, if competition pops up, and we’re not gonna be able to hit that deadline, what do you do? So, by tokenising the debt it gives everyone breathing room to sell at a normal pace with the market instead of against it.”
The Propellr-Fluidity joint initiative also has other expected advantages, which include expediting the transfer and monitoring of ownership shares in the property, as well as improved flexibility for investors. Serhant further states:
“Literally 25-30 million people can own a piece of this at a dollar a pop. When has that ever been possible?”
Meanwhile, Anthony “Pomp” Pompliano, a popular crypto capitalist and “Off The Chain” presenter, thinks that the future of investing will engage in more tokenization, saying:
“There’s only four assets you can own in the world: stock, bond, currency, or commodity. We think every single one of those is going to get digitised. Tokenise the world.”
This Manhattan venture is not the first case of a tokenized real estate investment opportunity. As previously reported by CoinWire in August, IndieGoGo has enabled the distribution of tokens shares in a luxury ski resort project in Aspen.