Utah-based Overstock, a large online retailer for brand names at clearance prices, revealed that its security token platform tZERO has teamed up with the Tezos Foundation in order to launch an initiative that aims to tokenize £500 million (appr. $643 million) in various real estate projects.
tZERO CEO Saum Noursalehi remarked:
“We believe that asset tokenization will revolutionize the real estate sector. We applaud Alliance Investments for spearheading one of the world’s first real estate-backed security token offerings. Tokenization of real estate will democratize access and greatly enhance liquidity for this asset class.”
Announced on October 30, tZERO and the developers of Tezos will be tokenizing select portions of real estate. The project has reportedly been funded by UK-headquartered Alliance Investments, and will soon be offered to investors.
Rani Zahr, chief information officer at Alliance Investments, stated:
“Raising funds through a security token offering (STO) is more efficient, cost-effective, autonomous and democratic than traditional financing. We believe that we are at the forefront of a technological change that can disrupt the current funding paradigm.”
The first STO is scheduled to take place early next year, when tZERO’s management will distribute tokenized securities representing £20 million (appr. $25.8 million) in equity of a water-front property that’s being developed in Manchester.
“This one building, a large multi-storage development, [is a] first for Alliance, but represents a large pipeline that they intend to fund using STOs.”
The Tezos protocol will form the foundational layer for “deploying, transferring and storing the digital assets and smart contracts,” which will be available in secondary markets on the PRO Securities alternative trading platform (developed by a US Securities and Exchange Commission-licensed subsidiary of tZERO).
The companies said that they’re planning to tokenize various other real estate properties in the coming years. These properties may include residential and student accommodations. Commercial and hospitality properties may also be tokenized in the future.
Business development consulting firm Megalodon will be serving as an advisor for these projects.
Source: Ethereum Worldnews
Original Post: Overstock’s STO Platform tZERO and Tezos Foundation to Tokenize £500 million in Real Estate