Blockchain Tokenization Comes to New York with a Multi million Dollar Property
The tokenization is already a fact, it has recently come to the Big Apple. A New York real estate agency and a property developer use the blockchain to create a multi- million dollar property in Manhattan with the mission of ensuring better and more consistent financing.
It has twelve 1,700-square-foot units and is located in the popular East Village neighborhood of Manhattan. The first valuations place the price around $ 30 million , which will have to be financed in a tokenized way to avoid the usual problems that occur when the process is done through a bank.
Skepticism Against Tokenization
When something unknown is done for the first time there is always a pinch of mistrust, especially in the case of having a lot of money involved. Although at first glance it may seem like the best way to raise capital, there are legislative risks in which the government will sooner or later intervene in a positive or negative way.
Today there is a lot of uncertainty with this, the division is large since there are several classes of tokens , among which we find utility tokens and security tokens.
The tokens useful are commonly defined as digital tokens with a clear purpose, such as financial transmission, and compared with the security tokens , which generally represent an investment in a project, company or centralized authority whose actions directly affect the performance of the related investment product.
Discover our Mind Session The DigiShares Platform
DigiShares provides a white-label platform for digitizing securities (shares, bonds, etc.), issuing these in order to raise funds for a project, and the longer term management of a group of tokenized investors. DigiShares’ platform can be used for any type of fund-raise (STO) but as a company DigiShares is focused on real estate projects. This document is as well focused on this industry. The DigiShares platform is “white-label” meaning that it is often sold to partners who offer the platform under their own brand-name.
The DigiShares platform can be used in connection with fund-raising but it can also be used in connection with the tokenization of existing real estate funds, in order to create more liquidity among existing investors and make it easier to on-board new investors.
The DigiShares platform provides a lot of functionality, however, the most important to mention is that it supports two main processes: (1) the issuance process where tokenized securities are issued in order to fund-raise for the project, (2) the longer term management of a group of investors who are holding tokens to document their ownership of securities within the project.
