Blockchain firm Turns Real Estate Shares Worth $36.5 Million to Tokens
The Manhattan block has 12 luxury apartments and has a market face value worth $36.5 million. A blockchain startup Fluidity has partnered with a broker-dealer company Propellr to tokenize this entire multimillion-dollar block of condos on a Blockchain network thereby allowing buyers to invest as much or as little as they like.
As per the co-founder of blockchain firm Fluidity Michael Oved, Blockchain can completely revolutionalise the concept of real estate investment. In one of his interview with Bloomberg, he spoke how the current market of property investment is inefficient owing to the presence of middle parties in terms of lawyers, brokers, and bankers and how Blockchain could address as a reasonable solution for it.
According to one of the team’s real estate agents, it will help them to repay the loan taken from the bank before the stipulated deadline. The condition is that either they have to sell a certain amount of units or have to repay the entire loan by a certain date. Taking into consideration the presence of odds such as delayed construction, market failure and peer competition, tokenizing the debt will provide a breathing room for everyone to sell at a normal pace.
More than this, the partnership has other cutting-edge advantages for the parties. For instance, due to the presence of Blockchain transparency, transferring, monitoring, and ownership of shares would be much more straightforward thereby adding a layer of trust between the real estate company and its potential buyers.