Blockchain Tokenization Strikes Again in $30 Million Dollar Manhattan, New York Property Sale
$30 Million Dollar New York Property Tokenized With Blockchain
A property developer and realtor in New York is set to use blockchain to tokenize a $30 million worth Manhattan property to secure more funding.
Sporting twelve 1,700 square feet units, the massive property located in the popular Manhattan neighborhood of East Village is being tokenized by a team of realtors led by
Ryan Serhant, who is also the star of the popular Million Dollar Listing New York television show. According Ryan funding through tokenization is devoid of issues incurred by traditional bank-led financing.
Ryan said tokenization is highly effective and could mean a disruption of the real-estate industry. He said “the market in New York is always strong, but it can take some time to sell for the right price in a new construction building. With blockchain tokenization, we can remove the unruly pressure of traditional bank financing, which is much healthier for the project and all of the stakeholders. Tokenization is paving the way for a new forefront in real estate development”.
Despite the genius that is tokenization, it is not devoid of risks which the realtors say would be averted using regulated venue but it still has the risk of designation of these token products as securities by regulatory authorities.
The reason is not far from the divide between utility tokens and security tokens. While utility tokens are for specific tasks like movement of finance, security tokens are an investment typically in a project, company or a centralized authority whose actions directly impact the performance of the related investment product.
Nonetheless, the Manhattan project is being done with Propellr and Fluidity, two companies that have created a financial token-based fundraising framework that is fully compliant with US securities regulations.
Todd Lippiatt, CEO of Propellr, discussing the new fundraising model said “traditional securities structures and issuance frameworks haven’t evolved in a long time. With blockchain technology, a transparent and trustless ecosystem can start to solve the information asymmetry that hinders the market’s potential for liquidity. This asset, structure, sponsor, and sales team showcase this evolution. With proper discipline and respect, the future is bright for tokenized securities.”