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  • Writer's pictureMichael Bacina

Tokenisation of Real Estate - Harbor steams ahead

Updated: May 2

CoinDesk reports that Harbor, Inc. has announced they have tokenised the shares of 4 real estate funds worth US$100M on the Ethereum blockchain using a Reg D approach which in theory makes the tokens freely tradeable at retail level 12 months after issue (but that's planned to be restricted to a broker dealer's platform at present).

Of interest may be Joshua Stein's comment on security token sales:

"The overlap between investors demanding tokens and investors interested in security tokens was zero. People were buying tokens but they weren’t buying it to invest, they were buying it to speculate."

Fractionalisation of assets is strictly speaking nothing new, it's what the joint stock company and unit trusts have done for over a hundred years, but with #DLT and #Blockchain tech the trading, record keeping and issuance is potentially much more powerful, even the registry services alone using a tokenised issuance can be made vastly more efficient.

I remain extremely skeptical that tokenisation is a golden road to liquidity for investments, but with the reduction in friction/transaction costs, there should be some areas which become attractive.

Darren Younger Kevin Saunders Nigel Phelan Louisa Xu 王莎莎 Petros Xenos Tom Skevington Mark Askin Margot King Kathryn Walker Robert Riddell


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