Revealed Tuesday, the platform gives investors access to commercial land properties like high-end hotels, according to Mike Liddell, CEO of AssetBlock. The Algorand blockchain utilizes the ALGO digital currency, but investors can’t exchange their ALGO for real estate stakes yet.
Liddell said that tokenized properties – such as those held by Lodging Capital Partners, AssetBlock’s launch partner – won’t roll out until mid-October.
AssetBlock’s platform has been in the development phase for more than a year, as indicated by Liddell, who said his group reached out to Algorand’s project managers at the beginning of the development process. They picked the Algorand network for its security and efficient system speeds.
Algorand’s quick transaction times are what CEO Steve Kokinos indicated as the blockchain’s most favorable advantage for real estate.
“We have immediate finality. If you start to look at high value assets like real estate, finality – having absolute certainty over who owns that asset – is very important,” he stated.
Algorand has benefitted from an injection of new capital. Its Algo token sale brought $60 million up in June; in August, investment firm Algo Capital secured $200 million for investment in Algorand projects.
Kokinos said tokenization enhances access to worldwide investments. “I think, at its core, the idea is to use tokenization and decentralized currencies to democratize finance,” he stated.
“For a large number of people in the world, there are many different investment opportunities, financial services and other products that aren’t really accessible.”