Initial coin offerings (ICOs) might have had its day, security token offerings (STOs) seem to have taken over.
As such, it is no surprise to see Fluidity, Ethereum’s first ever tokenized security platform.
The platform is built on the Ethereum platform and uses smart contracts to tokenize assets. It collaborates with dealer-brokers who are registered and regulated by the Financial Industry Regulatory Authority (FINRA). It then issues security tokens for them through its intricate yet detailed programmable compliance mechanism.
The programmable compliance is a set of processes that checks whether a token or a security meets certain requirements. These requirements may include but are not limited to know your customer (KYC), anti-money laundering (AML), and checks for accredited investors according to the U.S. Security and Exchange Commission (SEC).
Through these operations, Fluidity aims to bring Ethereum’s first ever tokenized security platform live for the public.
It’s first order of business? Tokenize homes.
How is Fluidity Going to Tokenize Homes?
Fluidity’s first initiative on the tokenized securities front is to bring homes to the system blockchain. By tokenizing real estate, it aims to make the transfer and holding of the actual asset to be far easier than it currently is.
With that, it aims to bring mortgage to the blockchain. People will not have to go through extensive paperwork to transfer their home’s collateral or value, they could easily handle the process of mortgages in a digital manner.
As such, anyone could submit their house to be tokenized, and go through the required paperwork. When the process is completed, they could pledge their house and get an advanced rate back.
Fluidity has already demonstrated its functionalities by tokenizing a $30 million property in Manhattan. Executed in October 2018, the development gained a bit of press and earned Fluidity and its partner firm Propeller traction.
Who is Associated with Fluidity?
After some ownership shifts here and there, Fluidity currently has a number of major shareholders. It includes names such as Mike Novogratz, Brock Pierce, and Bill Tai. Michael Oved and Don Mosites serve as the company’s co-founders.
Fluidity plans to go ahead with this mortgage security offering in Summer 2019. Learn more from its comprehensive FAQ section.