The first wave of blockchain is becoming more and more popular with the transfer of money; the second wave is accompanied by rapid development of financing demand; and the third wave is likely to solve the pain point in the financial field with the aid of tokenization.
At present, asset tokenization is mainly composed of two development routes. First, it is dominated by traditional financial institutions, and asset securitization is realized by means of blockchain technology. For example, in September 2018, the Shanghai Headquarters of China Government Securities Depository Trust & Clearing Co., Ltd. successfully supported the first issue of personal housing mortgage asset-backed securities bookkeeping and issuance in 2018, with a total scale of 9.314 billion yuan, becoming the first credit asset securitization project based on blockchain technology in the market. Second, it is dominated by blockchain companies, actively embracing supervision and extending to the traditional financial sector, For example, property and other real estate projects for the transformation of tokenization. At present, the two development routes draw on each other and develop each other.
In early October 2018, a high-end apartment property in Manhattan, New York, was successfully tokenized on Ethereum. Rachel Wolfson said in a Forbes article that this milestone represents "the first mainstream asset in Manhattan being tokenized, which has recently been valued at more than $30 million." Ryan Serhant, the broker who traded the deal, said he was thrilled by the blockchain and Security Token (ST)’s revolution in modern finance.
“The market in New York is still strong, but it still takes some time to sell a new building at a reasonable price. Through the blockchain-based tokenization, we can get rid of the enormous pressure of relying on traditional bank financing to a certain extent. This is a healthier model for the project side and all stakeholders. Tokenization is opening up a whole new frontier for the real estate industry.” – Ryan Serhant, Forbes
Unlike traditional financing projects, high-end apartments in Manhattan's East Village are high-quality assets of real value. STs based on asset issuance are similar to other asset-based investments: their value is supported by tangible assets. The value of the underlying assets can maintain the stability of the price of the investment products and reduce the fluctuation of the price of the cryptocurrency.
The real estate project in Manhattan, New York, where Amiran Group operates, is actually building a bridge between the legal currency world and the cryptocurrency world.Through the tokenization of real estate, the project can accept both legal and digital currency investments, and investors can receive interest denominated in legal or digital currency, which will improve the efficiency of liquidity and transfer of ownership of assets. Currently, the real estate group is working with Fluidity (Fluidity is a company that provides technical services for market makers, publishers and other financial institutions to trade securitization tokens).
In addition to teaming up with Fluidity, Amiran is also working with Propellr Securities LLC to advance the collaboration between the world of legal currency and the world of encryption:
“Propellr Securities LLC will connect the buyers and sellers of Security Token (ST) through the technology platform and even turn interest into tokens. Propellr will be able to accept legal currency payments and sell securities under Red D 506(c) exemption terms. By using the technology of AirSwap Including Tokenizing, a compliant secondary market will emerge. In other words, this will enable online, end-to-end, local asset block chain transactions to become a reality.
“Cross-border real estate transactions are a market with an annual turnover of $340 billion and a growth rate of 13%.” — Natalia Karayaneva | Hackernoon.