InWara - ICO Database, ICO review, Security tokens and more

Harbor aims to bring security tokens to the Real Estate market, partners with Rhodium

security tokens

Habor, the digital securities issuance platform that helps companies raise capital through the sale of fully compliant token offerings, is now aiming to introduce a security token that is backed by Real Estate assets.

The firm recently announced it is partnering with Rhodium Capital Advisor to create a fully compliant security token that represents the token holder’s ownership rights in a number of properties. Hoping to lower the barrier of entry into the real estate market by providing affordable housing solutions. The proposed partnership will witness the tokenization of a $100 million real estate fund, the likes of which never witnessed before in the industry.

Harbor has raised a whopping $38 million in Venture funding from industry heavyweights such as Andreessen Horowitz, Pantera Capital among many others.


Security token issuance platforms

security tokens

source

Currently, the most popular platform for launching a security token offering is Ethereum. A staggering 90% of all security token offerings were launched on Ethereum’s network. Why the huge disparity?

Because Ethereum allows computer application such as smart contracts to run on its network, thus operating as a great medium of exchange. On top of this, Ethereum is an open source platform which allows developers to create a wide variety of applications from asset issuance to crowdfunding.

But the main problem with Ethereum’s network is it wasn’t built with compliance in mind. Which is where a purpose-built security token issuance platforms and blockchain’s come into the play.

By far the most popular STO platform is Polymath with over 120 security tokens being issued so far, but as the company recently in a blog post-the adoption rate of security token didn’t match up with the market excitement in the space. Polymath believes the culprit is compliance, which is the company recently announced plans to develop a purpose-built blockchain just for security tokens (source)


Why this deal matters

Rhodium Capital Advisors-a fully integrated real estate service provider from ownership to management. The company recently announced at Consensus 2019, the availability of a tokenized real estate investment fund facilitated through Harbor’s digital securities issuance platform, according to Rhodium’s blog post. The company plans on attracting cryptocurrency investors looking to diversify their portfolio by investing in asset-backed security tokens.

This partnership is huge because Rhodium capital Advisors is an established company in the real estate market with a proven track record. The company has acquired or manages over $1 billion in real estate and holds as many as 100 portfolio properties and 10,000 residential units in the US.

The adoption of security tokens into the real estate market could be huge as it provides more liquidity to the traditionally low-liquidity market and enables fractional ownership of properties. To know more about how blockchain could revamp the real estate market, check out out article on how blockchain can revamp real estate.

Register for a free trial

The Most Trusted

Market Intelligence Platform

Get Started