AssetBlock to Tokenize $60 Million Worth of Real Estate on Algorand
On September 17th 2019, AssetBlock announced plans to tokenize real estate on the Algorand blockchain. AssetBlock will work with Lodging Capital Partners (LCP) to tokenize the ownership of $60 million worth of luxury hotel properties.
AssetBlock Tokenizing Real Estate on Algorand Explained
AssetBlock is a real estate investment firm. They’ve just announced the launch of a new platform designed to trade real estate ownership on proof-of-stake blockchain Algorand.
The deal involves LCP, a luxury hotel asset manager with a reported portfolio of properties valued at over $1.5 billion.
The new platform, says AssetBlock, will democratize the real estate market by making it more accessible to both institutional investors and individuals.
AssetBlock CEO Mike Liddell says,
“We saw an opportunity to build a solution that brings traditional and non-traditional real estate investors and professionals together efficiently, creating more opportunities for all involved.”
LCP says the integration of blockchain technology and real estate brings added liquidity to give them a competitive edge. Steve Kisielica, Principal and CIO of Lodging Capital Partners, says
“Our partnership with AssetBlock opens up LCP to a new investor pool which allows us to fundraise and expand our business more efficiently. To remain competitive in an ever-changing landscape, it’s vital for the real estate investment community to embrace technology like blockchain that is pushing the industry forward.”
The new platform is said to be available in mid-October 2019.
Security tokens continue to see increased levels of implementation with real estate.
Earlier this week, Harbor announced a deal with iCap Equity to tokenize four real estate funds worth over $100 million.
Most argue that the primary advantage of Security Token Offerings (STOs) over ICOs is regulatory compliance. In addition to real estate, security tokens have been leveraged through assets including equity, investment funds, and even fine art.
What do you think of AssetBlock teaming up with LCP to tokenize $60 million worth of real estate? Will security token adoption be the result of a specific asset class, such as real estate, or rather an SEC exemption, such as the Reg A+? We’d like to know what you think in the comments section below.
Image courtesy of AssetBlock.