Tokenized Real Estate
An announcement made today by Inveniam Capital Partners, has revealed that the group intends to tokenize $260 million worth of real-estate. The first chunk of which is a $66 million USD property located in Miami.
The idea of tokenized real-estate is one of the most prevalent, and popular, in the growing world of digital securities. Real estate has long represented an asset class that is high on potential, but low on accessibility and liquidity. Through the use of blockchain technology, Inveniam Capital Partners looks to change this.
By offering investors access to this event, Inveniam is giving investors the means to gain exposure to stable assets. All the while maintaining their footing within the cryptocurrency industry.
Bringing further intrigue to the opportunity, is the manner in which these digital securities will be sold. To date, most STOs provide investors with the opportunity to by tokens at a fixed rate – often with limitations on the amount of shares that can be purchased. Inveniam Capital Properties have decided to utilize a Dutch auction instead.
A Dutch Auction allows for investors to essentially bid for their desired holdings. With a fixed number of tokens available, investors take part in a timed event which allows for them to submit bids. Each of these bids will state the quantity of desired shares, and what they are willing to pay for them. Upon closure of the auction, the investors which submitted the best offers will be rewarded with digital securities representative of ownership in the properties.
In an excerpt from their information packet, Inveniam has high praise for cryptocurrency, and its place within finance.
It is stated,
“This trade is the first of its kind: a large, multi-offering placement of real financial instruments in tokenized form to be held in crypto wallets and sold via Dutch auction. In undertaking this transaction, we will send a clear signal to markets that cryptocurrency can indeed be a store of value which can be used in institutional transactions.”
With this message being sent, it is clear that Inveniam is confident in the future of cryptocurrencies. They are also confident in their ability to be a trailblazer in this young industry. This is made clear when they state,
“We are the first to tokenize multiple complex debt instruments and has produced tokenized instruments for seven different transactions to date, including the full provenance of diligence materials, deal documents, and distribution of tokens to holders of the debt instruments. Inveniam is the first to market and is the only company with the full business and technology stack in place to create, distribute, list, and sell highly functional security tokens for complex financial instruments.”
Inveniam Capital Partners
ICP is a blockchain focused investment firm, which was founded in 2016. The company maintains headquarters in New York, where operations are overseen by CEO, Patrick O’Meara.
In Other News
As stated above, real estate has shown itself to be one of the most intriguing applications of digital securities. With this in mind, here are a few articles detailing events pertaining to the use of STOs within real estate.