Digital transfer agent Vertalo is helping tokenize $300 million in real estate.
In the first deal completed on its new tokenization platform, blockchain consulting firm Advantage Blockchain is teaming with Vertalo and alternative trading system tZERO to tokenize the portfolio of Class A properties owned by a boutique firm, the companies told CoinDesk.
The portfolio belongs to Pennsylvania-based Real Estate Capital Management, and Advantage plans to tokenize the portfolio in phases, starting with $90 million of office and hospitality real estate over the next three months, said Alec Beckman, president of the consulting firm. Hotels in Pennsylvania and Costa Rica will be the first to be tokenized in the deal.
The multi-firm partnership lays the groundwork for a steady stream of real estate tokenization projects for properties and real estate investment trusts in Philadelphia and other parts of the northeastern U.S., said Vertalo CEO Dave Hendricks.
The digital representations of real-estate shares will trade alongside tZERO’s private equity token, TZROP, and Overstock’s digital voting series A-1 preferred stock, said tZERO CEO Saum Noursalehi.
“Rather than doing one-off deals … we’re partnering and are able to scale that way,” Noursalehi said. “We’re the most liquid platform out there for security tokens. We should have our own retail broker-dealer live in Q2 and have signed up another four to five broker-dealers to integrate and trade security tokens on our platform.”
There are already 55 additional funds in the pipeline, waiting to begin tokenized, Vertalo’s Hendricks said. Vertalo is working with four other firms similar to Advantage that will provide access to more funds.
Through Vertalo, Advantage will use the Tezos blockchain to tokenize the real estate. On tZERO, investors can sign up to trade tokens through Dinosaur Financial Group, a broker-dealer…