MountX Real Estate Capital has licensed transfer agent Vertalo to design and launch tokens for at least 15 digital real estate projects in Mexico and Canada through 2020 and early 2021, the firms announced last week.
According to a press statement, this is the third of four planned deals by Vertalo’s real estate division (VRE), launched this past June, that focuses on the tokenization of real estate assets. Vertalo is one of the few transfer agents – Securities and Exchange Commission-registered record keepers – in the crypto industry.
Real estate tokenization once looked like an extremely popular blockchain use case that promised to disrupt the global real estate market, with crypto firms like AlphaPoint and Harbor launching initiatives to put real estate assets on a blockchain. However, investors didn’t immediately take to the new promise of trading tokenized pieces of properties on a public ledger.
One problem was that issuers had to get tokens out to increase liquidity, while institutions wanted to see liquidity before they changed their operations. Multiple deals have fallen apart as a result, including Harbor’s partnership with the real estate division of Chicago-based DRW Holdings.
Vertalo co-founder and CEO Dave Hendricks told CoinDesk the 2018 “hype cycle” for real estate tokenization was about two years ahead of the implementation of the technologies needed to make it a reality.
According to Hendricks, although tokenization of real estate had been possible for three years, the alternative trading systems (ATS) and exchanges that could trade these digital debt instruments had not received regulatory approval.
“Another missing piece was the digital transfer agent – like Vertalo – that could manage the shareholder data for proper record keeping purposes,” Hendricks said.
Now, 2020 has seen a rekindled interest in the sector. In February,…