Overstock’s security token trading platform tZERO has partnered with Tezos Foundation to tokenize a whopping twenty-five million US dollars ($25 million) in UK real estate.
The Internet has generated a lot of hype about security tokens nowadays. And why not! They do have the potential to offer much more significant returns as compared to any other cryptocurrency. Given the scope of regulatory guidelines they adhere to, people consider them a lot safer than any other stocks or crypto assets. Thus, from mortgages to parking spaces, security token offerings (STOs) have the ability to tokenize almost any asset and empower even the small-time entrepreneurs to raise millions with minimal up-front costs.
Tokenizing UK real estate
In the same spirit, tZERO and Tezos foundation have joined forces to tokenize at least $25 million of the value of the private residential apartments sold by UK-based real estate developers Alliance Investments on the Tezos blockchain platform. According to Wednesday’s announcement, the interested and qualified investors will be eligible to buy tokens through an initiated STO slated for Q1 2020.
The first round of offering will offer twenty million US dollars ($20 million) in equity for an elite water-front residential complex, currently under construction in Manchester. The offering will be executed with the Tezos blockchain platform, the underlying technology which will assist in deploying, transferring, and storing digital assets and smart contracts.
Alliance to spearhead real estate tokenization
CIO at Alliance Investments, Rani Zahr, expresses her excitement in collaborating with tZERO, a firm that intends to tokenize digital assets through blockchain technology fundamentally, thereby revolutionizing traditional capital markets.
At Alliance, we want to be at the forefront of technological innovations, something that the real estate industry is yet to get accustomed to. She firmly believes that STOs are the way forward as they offer cost-effective, self-supporting, and democratic forms of raising funds as opposed to traditional financing.
It appears that the grand-scale tokenization project will also be the UK’s first-ever real estate STO. Reportedly, the firm aims to tokenize approximately six hundred and forty million US dollars ($640 million) through real estate projects, including residential and commercial properties, in the UK, spanning over the next few years.