While cryptocurrency created a new means by which people around the world can pay for goods and services, blockchain created a whole new way to do business by the process of tokenization on various blockchains. This has led to various types of business with various assets tokenized on blockchains such as art, wine, and other valuable assets. There has also been an increase in the tokenization of real estate and real estate funds via blockchains which has created a new way for people to invest in the industry.
This new investment method does not seem to be going anywhere anytime soon as Harbor, a startup has announced a partnership with a iCap equity, which is a Seattle-based real estate investment firm through which they will tokenize $100 million worth of real estate funds over the Ethereum blockchain.
Blockchain and Real Estate
This announcement was made on September 16, 2019, in which iCap stating that they will make use of Harbor’s blockchain platform to increase the liquidity or four of their real estate portfolios to the tune of $100 million minimum each. On Harbour’s part, they created the tokens on the Ethereum blockchain and each token represents a piece of real estate liquidity and this will allow buyers and sellers to trade in iCap security seamlessly over the blockchain which will open the door for even more investments and ease of trade.
The end goal of all of this is to increase liquidity for real estate investors like real estate, unlike certain other assets, is not the most liquid at any given time but this new development helps to solve the problem and it is believed that it will stimulate the business.
“iCap provides high-yield investment opportunities for investors, but those investments typically come with a 3 to 5 year lock-up period because they are based in real estate. Now, with Harbor, we are able to provide the same strong returns, but also an option for investors to more easily liquidate if desired,” said Chris Christensen, iCap Equity CEO.