In what could be the largest real estate tokenization that we’ve ever seen, digital marketplace and tokenization firm Inveniam Capital Partners (ICP) announced that they’ll be putting a $66 million building on the Ethereum blockchain.
And this is just the first phase of their plans.
According to ICP, the Miami, Florida building is valued at about $65.5 million and they plan to sell tokenized shares totaling $260 million that will involve three additional projects. These future ventures include: a water pipeline in North Dakota valued at $50 million, a $75 million housing facility in Florida, and a $90 million student housing facility in North Dakota.
In January of this year, they reportedly plopped down a deposit on the Miami building with an unknown sum of Bitcoin (BTC) and will soon start selling ERC-20 tokens on the Ethereum blockchain for investors wishing to purchase a piece. Shares for the Miami property, as well as the three future real estate offerings will be sold on the Ethereum blockchain with what’s known as a Dutch auction.
This means that in order to participate, investors must submit bids that identify the number of shares that they wish to purchase, the price per share that they’re willing to pay, and which cryptocurrency they wish to use for the transaction.
ICP stated that the price “will be based on the lowest price of the last successful bid” and that this is “dependent upon the bidder’s fiat-to-crypto conversion rate limit.” Inveniam will accept the top 50 digital assets by market cap and at the end of the sale token distribution will flow from the highest bidders to the lowest.
However, don’t run off to check your wallets quite yet, this opportunity has a few stipulations. Inveniam requires that your crypto holdings must be at least $10 million, with a minimum purchase set at $500,000.
Asset tokenization is a method that converts asset rights into a digital token, and it has become more popular in the last year or so. Known as Token Asset Offerings (TOAs), Security Token Offerings (STOs), Digital Asset Token Offering (DATO), or just security tokens, they have various organizations looking to leverage blockchain technology in order to offer tokenized shares of real estate, as well as art work and other tangible “real-world” assets.
So, don’t get discouraged either… your chance to exchange crypto for something rather cool may be just around the corner. Imagine a $100,000 painting that the owners decide to tokenize into 100,000 tokens. This means that when you purchase a single token, you’re actually buying a share of ownership of the painting.
Inveniam did state that the token sale process will follow the private placement rules set by the U.S. Securities and Exchange Commission (SEC), and that system transparency allows regulators to use a transaction hash and the cipher to trace “every document associated with this transaction.”
Hopefully, this is the bigger beginning for asset tokenization and we’ll see more announcements and opportunities in the very near future.
