A $30 million condo became the first major asset in Manhattan to be tokenized on the blockchain. The East Village building consists of 12 condos, each containing 1,700 square-feet of space and now, all 12 are tokenized on the Ethereum blockchain. The East Village property is currently represented with a number of tokens on the blockchain, available for purchase. A token signifies a portion of the value of the real estate property, which enables crypto users to invest in luxury condos, even if it’s a small investment.

CNN reports that bestselling author Ryan Serhant brokered the deal and believes tokenization is a viable modern financing method. Serhant told Forbes, “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.”

Digital assets firm Propellr partnered with tokenization specialists Fluidity to tokenize the real estate, while the firms intend on continuing to collaborate in the future. Propellr, a FINRA registered broker-dealer, will use its experience in capital markets to sell both, traditional and tokenized, securities under Reg D rule 506(c). However, Fluidity offers tech services to broker-dealers and other financial businesses dealing in tokenized securities. Fluidity helps ensure that Propellr can accept fiat payments in exchange for securities, while remaining legally compliant.

“Going to market with a landmark deal allows us to make a statement—that this technology is now real. With the right partners and an optimized structure, we are bringing a major real world asset online.  We are grateful we have the opportunity to lead the blockchain community in this new paradigm,” says Michael Oved, co-founder of Fluidity.

Tokenization is capable of being applied to asset classes to assist in increasing liquidity and provide better investment opportunities for smaller investors. Real estate tokenization in particular has been in the works for quite some time and the luxury condo complex is a major step in seeing that use case realized.

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