$300 million worth of real estate assets will be, potentially, tokenized in the coming months. These assets are part of a pair of investment funds managed by Real Estate Capital Management (RECM).
This undertaking is the handywork of, not only RECM, but of an enterprising group of blockchain oriented companies. Those involved include:
- Advantage Blockchain
- Prime Trust
This group of companies, each working together, will provide their own areas of expertise. Vertalo will facilitate tokenization through use of the Tezos blockchain and act as a digital transfer agent, while tZERO will provide liquidity via secondary markets and act as a broker/dealer. Advantage Blockchain, meanwhile, will act as a marketing and consulting firm, and Prime Trust will provide custodial and settlement services.
This joint effort is slated to begin by focusing their efforts on an initial $90 million worth of real estate- leaving $210 million in untapped potential for the near future.
Two notable properties to be first up, include hotels located in, both, the United States and Costa Rica.
Blockchain of Choice
Increasingly, the digital securities sector is moving towards utilizing Tezos for undertaking, such as the one discussed here today. Reasoning behind this often point to increased versatility provided by the blockchain through highly programmable smart contracts.
This shift has caught our attention in the past. It was only months ago that Vertalo, themselves, announced their decision to follow suit.
Upon announcing this endeavour, RECM President, Gary Grandeis, took the time to elaborate. He stated,
“Real estate is the perfect industry to take advantage of the newest innovations with those companies transitioning us to digital platforms and flexible ownership structures having the largest impact. Advantage Blockchain is focused on bringing breakthrough financial technology solutions to commercial real estate owners.
“As a Pennsylvania-based commercial real estate owner and developer, Real Estate Capital Management is working with Advantage to identify and implement real estate tokenization solutions with the goal of increasing ownership efficiencies and creating real estate liquidity where it hasn’t existed before. Real Estate Capital Management looks forward to being a leader in this space and is excited to work with both the Advantage Blockchain and Vertalo teams.”
Founded in 2017, Advantage Blockchain maintains operations in Philadelphia, Pennsylvania. Above all, the team at Advantage Blockchain works to ‘unlock new value for businesses by providing strategies and solutions centered around cutting edge revenue creation’.
CEO, Dylan Rhodes, currently oversees company operations.
Operating out of Austin, Texas, Vertalo was founded in 2017. In the time since, this company has managed to establish themselves as a clear leader with the burgeoning digital securities sector. Beginning as cap-table specialists, Vertalo has expanded their areas of expertise to become a diverse service provider.
CEO, Dave Hendricks, currently oversees company operations.
A product of Medici Ventures, tZERO describes their goal as ‘enabling the market to create and trade digital securities using blockchain technologies’. This has led tZERO to develope a fast growing secondary market, providing liquidity for digital securities.
CEO, Saum Noursalehi, currently oversees company operations.
In Other News
In recent weeks Tezos has generated buzz on various occasions. This is, not only, in part due to the recent adoption being seen through the digital securities sector, but due to the potential closing of a turbulent chapter in its history. The following articles take a look at both of these.