$ 30 million real estate property symbolized by Blockchain

Nest seekers

Luxury condo development in Manhattan gets a new digital home on the Ethereum global blockchain. The building, a completed 12-unit construction with 1,700-square-foot units located at 436 and 442 E 13th St in the East Village, is Manhattan’s first major asset to be tokenized on Ethereum. The property was recently valued at over $ 30 million.

Ryan Serhant, bestselling author of Sell ​​it like Serhant and star of Bravo New York Million Dollar Ad, is the listing broker for the transaction. He and the developer are turning to tokenization as a new funding method, which could be a better alternative for the project and investors.

“The market in New York is still strong, but it can take a while to sell for the right price in a new building. With blockchain tokenization, we can remove the unruly pressure of traditional bank financing, which is much healthier for the project and all stakeholders. Tokenization paves the way for a new breakthrough in real estate development, ”Serhant told me.

Tokenization is the process of digitally representing ownership of real-world assets on a blockchain. This new method of financing is the result of the partnership between Helix and Fluidity, two companies that have joined forces to offer compliant products and services for the creation, distribution and transfer of digital titles.

Traditional securities structures and issuance frameworks have not changed for a long time. With blockchain technology, a transparent and trustless ecosystem can begin to resolve the information asymmetry that hinders the liquidity potential of the market. This asset, this structure, this sponsor and this sales team illustrate this evolution. With proper discipline and respect, the future is bright for symbolic titles , Todd Lippiatt, CEO of Propellr, told me.

Propellr is a creation, management and service platform for digitally held assets, and the parent company of Propellr Securities, a broker registered with FINRA. Propellr will use its experience in financial and capital markets to offer and sell traditional and tokenized securities under so-called Reg D rule 506 (c).

Fluidity, the team behind AirSwap, provides technology services to brokers, issuers and registered financial institutions for tokenized securities. Fluidity has partnered with Propellr for its institutional capabilities, enabling it to accept fiduciary payments and solicit and sell securities under 506 (c).

Investors will have the option of receiving either analog or digital interest in the securities, which should cover all the bases for potential buyers of the deal. AirSwap technology will be integrated into the offering process, including the “tokenization” of securities and the emergence of a compliant secondary market.

“With our flagship product AirSwap, we are building a system that brings local assets online using blockchain technology. This makes them available for trade in a global market, directly between buyers and sellers. Fluidity is forming the basis of a new tokenization and exchange system, ”Don Mosites, co-founder of Fluidity, told me.

The tokenization structure was considered and published in The cascade of two tokens, a comprehensive framework for applying blockchain technology to the entire capitalization of a real estate transaction. The increased transparency of the structure has the potential to improve the liquidity of private securities and can be applied to a wide range of assets in the real world.

“Going to market with a historic agreement allows us to say that this technology is now real. With the right partners and an optimized structure, we bring a major real-world asset online. We are grateful for the opportunity to lead the blockchain community in this new paradigm, ”said Michael Oved, co-founder of Fluidity.

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