$30 Million New York Condo Tokenized on Ethereum Blockchain
The future of real estate and the mortgage business are set to be revolutionized by tokenized properties.
Now Everyone Gets a Slice
A $30 million Manhattan building has become New York City’s first luxury property to be tokenized on blockchain. The building is located in East Village and contains twelve 1,700 square foot condos. The entire property is now represented by an unconfirmed number of tokens on a public blockchain, and each token stands for a fractional value of each property.
Tokenizing the property now allows people with a small amount of money to invest in real estate and this could be a game changer for those living in expensive cities with sky-high property prices. Ryan Serhant, the celebrity star of Bravo’s Million Dollar Listing New York brokered the deal. Serhant explained to Forbes that tokenized property and financing could:
[…] remove the unruly pressure of traditional bank financing, which is much healthier for the project and all of the stakeholders.
Blockchain Will Bring a Real Estate Revolution
This new method of digitally representing ownership of tangible assets on blockchain has already taken hold in the world of fine arts — a Warhol painting recently auctioned for $5.6 million via Ethereum blockchain.
The sale of the New York property was the result of a partnership between blockchain tokenization experts Fluidity and Propellr, the latter of which is a digital assets firm. Propellr CEO Todd Lippiatt believes that blockchain technology and tokenized assets will revolutionize the real estate and securities market as “traditional securities structures and issuance frameworks haven’t evolved in a long time.”
Do you think tokenized properties level the playing field for all investors? Share your thoughts in the comments below!
Images courtesy of Bitcoinist archives, Shutterstock.