$30M Building in Manhattan is Getting Tokenized on Ethereum

 In Altcoins, Governments and Regulations

A luxury building in Manhattan will be sold to investors through security tokens, as two companies, Propellr and Fluidity, are now tokenizing it on Ethereum.

A luxury Manhattan building valued at over $30 million is getting tokenized on Ethereum blockchain, becoming the first major real estate asset in Manhattan to get digitalized through the tokenization process on a distributed ledger network. According to Forbes, the building comprises a 12-unit condo development located in the East Village neighborhood. The deal is managed by security token service providers Propellr in partnership with Fluidity. 

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Reality TV star Ryan Serhant, who is a real estate salesperson, is the listing broker on the arrangement. He and the developer regard the tokenization process as an innovative approach to raise funds. The new method might be the ideal choice for investors and the project as a whole.

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Serhant, who is also the bestselling author of ‘Sell It Like 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.”

During the tokenization process, real-world assets such as company shares, real estate units or commodities can get a digital form on a blockchain network through so-calledsecurity tokens. The latter represents a convenient method to transfer ownership and trade the asset.

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Propellr, which provides a platform for the creation and management of security tokens, partnered with Fluidity, a company that offers tech solutions to broker-dealers, issuers, and institutions for tokenized assets. Propellr is also the parent company of Propellr Securities, a broker-dealer registered with the Financial Industry Regulatory Authority (FINRA).

Fluidity operates its flagship product called AirSwap, a token trading wallet-to-wallet technology. The company said that it would adapt its AirSwap platform so that FINRA-registered broker-dealers could develop a secondary market for property assets and other securities via Fluidity’s P2P trading network.

Fluidity co-founder stated:

“Along with our flagship AirSwap, we’re building a system that brings local assets online using blockchain technology. This makes them available for trade on a global marketplace—directly among buyers and sellers. Fluidity is forming the foundation of a new system of tokenization and trade.”

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