Overstock’s Blockchain subsidiary tZero, just won a multimillion tokenization project where at least 25 Million USD of the value of Alliance Investment’s River Plaza will be tokenized. As we are reading in the blockchain news below, River Plaza is ‘’the UK’s first real estate-backed security token offering.’’
This is also the first project of Alliance Investments’ real estate tokenization plan and the UK-based real estate investment company that aims to tokenize approximately $640 million of real estate projects across the UK over the next few years. The River Plaza STO stated they will be digitized using tZero’s tokenization technology and Megalodon’s advisory services issued on the Tezos (XTZ) Blockchain. XTZ trades at USD 0.91 and it has increased by more than 5 percent in the past hour and by 4.3 percent in the past 24 hours while most of the coins from the top 20 by market cap are back in red again. As the Alliance Investments CIO Rani Zarh stated:
“We strive to stay ahead of the innovation curve and believe that security token offerings are the future. They are more efficient, cost-effective, autonomous and democratic in comparison to traditional financing.’’
According to the announcement, the real estate market is now greater than the value of all stocks and shares combined but it is also the most difficult asset class to invest in. The reports show that only one-third of the global real estate assets are investible at scale and the rest is not being accessible to public investors.
Overstock’s Blockchain subsidiary explained that real-estate based STO is the process of launching digital equity security in a holding company that owns the real estate asset. Also, more security tokens can be structured to represent a variety of ownership and economic interests in the assets such as equity in a company that owns the asset.
In the meantime, the Cayman Islands-based holding company La Estancia Holdings LTD. has also started offering real estate investment through STOs because the real estate STOs are ‘’future-proof investments which provide more liquidity than a traditional real estate investment.’’ Also, the company wants to gain citizenship in the Dominican Republic which is also extremely beneficial to other STOs investors.
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