Securrency, a platform for issuance and compliance, and Vertalo, a digital assets management firm (both US-based) have partnered to tokenize just over $260 million in real estate assets. The private offering will involve multiple properties.
Both parties have signed an agreement to tokenize $260 million worth of fixed income-generating real estate assets.
The deal was described as a ‘first-of-its-kind’ agreement which aims to provide capital for middle market real estate projects in a groundbreaking manner.
The ultimate goal is provide investor access to institutional-grade digital assets.
The group claims to have created the world’s largest asset tokenization project to date.
Details of Securrency and Vertalo Tokenizing Real Estate Explained
The offering— as most Security Token Offerings (STOs)— will be private. It will include a North Dakota water pipeline project, a student-housing portfolio, a commercial office building in downtown Miami, and a Florida multi-family housing project.
The agreement aims to utilize the strengths of the different parties involved.
Vertalo is a digital asset management platform which provides services to include custody, compliance, cap table management, and primary issuance.
Securrency specializes in blockchain interoperability while supporting the secure and compliant issuance of security token trading.
The two enterprises have partnered with Inveniam Capital Partners for this particular deal. Inveniam is a digital marketplace which aims to reshape the current functionality of middle market corporate finance.
According to Vertalo CEO Dave Hendricks, the new deal has a bright future:
“Inveniam Capital is demonstrating that asset tokenization is about creating liquidity premiums and Vertalo is excited to help bring these offerings to a market hungry for well-structured deals that happen to be blockchain-enabled.”
Several other instances involving real estate tokenization have already taken place. They include a luxury condo development in Manhattan, a luxury student residence in South Carolina, and a luxury resort in Aspen Colorado.
Despite the pessimism currently surrounding cryptocurrency, security tokens continue to exemplify a highly anticipated opportunity for the implementation of blockchain technology.