The digital transfer agent Vertalo is now in the real estate and blockchain news, showing that it is helping tokenize $300 million in real estate along with its partner, tZero. The consulting firm Advantage Blockchain is now teaming with Vertalo and the alternative trading system tZERO to tokenize the portfolio of Class A properties owned by a boutique firm – all of which is placed on the Tezos blockchain.
When it comes to the entire portfolio, we can see that it belongs to the Pennsylvania-based Real Estate Capital Management. Advantage now plans to tokenize the portfolio in phases, starting with $90 million of office and hospitality real estate over the next three months. This is what the president of the consulting firm Alec Beckman said.
Hotels in Costa Rica and Pennsylvania are among the first properties on the list to get tokenized on the Tezos blockchain. But how will all of this be laid out?
Well, the digital representations of real-estate shares will trade alongside the tZERO private equity token, TZROP, and Overstock’s digital voting series A-1 preferred stock, as the CEO of tZero Saum Noursalehi recently said.
“Rather than doing one-off deals … we’re partnering and are able to scale that way,” Noursalehi said. “We’re the most liquid platform out there for security tokens. We should have our own retail broker-dealer live in Q2 and have signed up another four to five broker-dealers to integrate and trade security tokens on our platform.”
Through Vertalo, Advantage will use the Tezos blockchain in order to tokenize the real estate. On tZERO, traders can sign up and trade tokens which are custodied by Nevada-based Prime Trust.
while in the past, tokenizing real estate has been seen as a way to make it easier to trade real estate investments, the Tezos news now show that trading real estate normally requires finding a buyer and transferring paper certificates to a central office. Vertalo is aiming to change all of this and help managers who are looking to improve back-office efficiency and create more liquidity, as Hendricks noted.
“The stuff we’re doing now is with fund managers who already own the assets,” Hendricks stated. “We’re not using a security token to raise money. We’re using the technology to reduce costs and save money.”
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