Mike Novogratz, heavily praised the tokenization of real estate reinstating asset tokenization is an emerging trend. He is the founder of crypto investment bank Galaxy Digital Capital Management. He observed that although crypto market is on a downward spiral, there are several developments taking place.
The billionaire investor told Bloomberg, “While it feels like a crappy bear market — and it has been in coins — underneath it there are all kinds of positive things. There are new technologies coming. There’s positive movement on the institutional adoption of the architecture needed.”
Real Estate Tokenization
Novogratz laid emphasis on several enterprises tokenizing luxury condos in the exorbitantly priced real estate markets of New York and Aspen, Colorado. “You’re going to see more and more of that,” he promised. “It’s not nearly as sexy as Web 3.0, but it’s a part of this broader movement of tokenization, digitalization in the blockchain,” Novogratz noted. “The blockchain makes a lot possible.”
Although real estate tokenization is not an alien concept, tokenization of luxury condominiums is becoming more common with security token offerings(STO).
Several condo buildings are getting their own tokens and it is enabling them to invest in luxury condos even with minuscule investments. A task previously unachievable.
Previously, a $30 million Manhattan building comprising of 12 condos was tokenized on Ethereum blockchain. The property is presently represented with a sum of tokens available for purchase. Ryan Serhant, New York City real estate agent brokered the deal.
Ryan leads the Serhant Team, which apparently closed $838 million in real estate deals in 2017. This deal made it the No. 1 real-estate team by sales volume in New York and No. 2 in the United States.
According to Real Trends, “With blockchain tokenization, we can remove the unruly pressure of traditional bank financing, which is much healthier for the project and all of the stakeholders,” Serhant told Forbes. “Tokenization is paving the way for a new forefront in real estate development.”
To gear up for this, Mike Novogratz has roped in Goldman Sachs veteran Ian Taylor to manage Galaxy Digital’s blockchain advisory-services arm. Taylors has worked with Goldman for almost 19 years. He is said to join Galaxy Digital before January 2019.