Harbor Launches Its Tokenisation Platform with a $20m Tokenized REIT

SecurityToken.it Newsletter #12

Somewhat suddenly, tokenized investment platform Harbor has released their platform, along with their first client who will issue tokens in a Real Estate Investment Trust (REIT).

That Harbor has launched, and that another REIT is tokenizing is great news. Now we’re waiting eagerly to see how successful these projects will be.

But even if they are successful, one of the expected benefits of tokenization in real estate — that through fractionalization retail investors can invest in large real estate projects — has not yet been realized. Tokens in this REIT will cost $21,000 — and similar projects often only focus on accredited investors. So we hope to see a retail investor-focused project soon, depending on willingness and regulation.

QUOTE

"If it has value, it will be tokenized."

— Mythos Capital founder Ryan Sean Adams on Twitter

NEWS

⚓ Harbor launched its platform for tokenizing private securities. Its first offering is a tokenized REIT [or ‘TREIT’?] representing $20m of private equity in off-campus student housing at the University of South Carolina. Take a look at the TREIT’s website.

💰 Token issuance platform Securitize raised a $12.75m series A from Blockchain Capital, Global Brain, Ripple’s Xpring fund and Coinbase Ventures.

🏬 Overstock’s CEO Patrick Byrne plans to sell Overstock by February, fully betting on tZero and its other blockchain ventures.

🏅 In line with our last newsletter, here’s another alleged ‘first’. Tokenized real estate platform Tokenestate has transacted its own tokenized equity using Ethereum.

🚧 Security token exchange Blocktrade started with the listing process for security tokens, as indicated on Twitter.

🏦 Abu Dhabi-based (and government-owned) Al Hilal Bank settled an Islamic bond (or ‘sukuk’) worth $500 million.

LONGER READS

🏢 An insight into real estate tokenization, and the challenges and opportunities of this two-sided marketplace.

🌅 From the ICO’s demise to the digital security’s rise — by Securitize’s Jamie Finn.

NEW STOs

🇹🇭 Satang Corporation, which manages the second largest crypto exchange in Thailand, is planning to issue a security token in the US and list it on tZero. It also has plans for a baht-based stable coin, a wallet and a webshop.

🎥 Indian Netflix competitor Spuul is planning to go the STO route by first offering convertible notes to private investors, and offering security tokens in future rounds.

POSTSCRIPT

Which industries are most ripe for disruption by tokenized securities? With this week's news from Harbor and Tokenestate, real estate is a clear-cut answer.

But others, such as investment funds, also come to mind. But for each industry, traditional players need to be convinced of the benefits of tokenized securities and take a leap of faith. This mean we should focus more on education.

This doesn't mean education for those who already know of security tokens. Instead, it means educating real estate developers, investment fund managers, and CFOs of the benefits of tokenised securities. And that is the real challenge we now face.

See you next week! 👋

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