tZero, which is Overstock’s blockchain subsidiary, is in the crypto news today for stating that it will help tokenize at least $25 million in USD of the value of Alliance Investments and its River Plaza which is a 180-unit luxury residential development in Manchester, UK. tZero and Tezos will work together to tokenize this real estate project with a plan that aims to tokenize approximately $640 million of real estate across the UK in the next several years.
The River Plaza STO, which is slated for Q1 of 2020, will be fully digitized using tZero and its tokenization technology as well as Megalodon and its advisory services. It will be issued directly on the Tezos (XTZ) blockchain. At press time, XTZ trades at around $0.91 and is up by 5% in the past hour. The Tezos news today show that the altcoin rules most of the other top 20 coins – which are now in the red.
“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,” the CIO of Alliance Investments Rani Zahr was quoted as saying.
The announcement also shows that while the real estate market is greater than the value of all stocks, shares and stocks combined, it is also one of the most difficult asset classes to invest in. This is what tZero and Tezos have to tackle.
“Only one third (USD 81 trillion) of the global real estate asset are readily investible at scale, with the rest not being accessible to public investors in a meaningful way,” Zahr said.
For those of you who don’t know how a real estate-based STO works, it is basically the process of issuing digital equity securities in a holding company which owns the real estate asset. Generally speaking, security tokens can be structured to represent a variety of ownership and economic interests in an underlying asset such as equity, interest, stream of income etc.
tZero and Tezos Foundation will focus on the blockchain innovation in the real estate space. They are now actively trying to revolutionize the capital markets and address through an intuitive way to buy, sell and manage cryptocurrency (tZero) and active use of the XTZ (Tezos) token.
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