Ethereum: Luxury apartment building in Manhattan on the Blockchain – CoinHero

New York has often been a pioneer in financial matters, after all Wall Street is at home there. Now history is to be written there and Ethereum is an important part of it. A US$30 million luxury apartment building in Manhattan becomes the first large property to be translated into tokens. This digitizes the value of the building and can be used later to buy investors with the crypto currency.

The first major asset in Manhattan has been tokenized on Ethereum. /r/CryptoCurrency https://t.co/LQ7w32DyQf pic.twitter.com/L65mc6kenR

– CryptoNewsDaily (@CryptoNDaily) October 8, 2018

Advantages of tokens in the real estate market

The building in Manhattan is a luxury apartment complex with 12 units in the East Village and has a value of around 30 million US dollars. The tokenisation is to be based on the crypto currency Ethereum and the successful integration of the currency into the real estate market could drive ETH Zurich’s share price up significantly again. The process is carried out by the companies Propellr and Fluidity. The real estate agent of the building complex is reality TV personality Ryan Serhant, who in 2012 achieved 15th place among the most successful sellers in New York on the list of the magazine “The Real Deal”. He sees the new development on the real estate market as extremely positive. So the tokenization is supposed to be a possibility to get financings.

With this method it is the ideal choice for this project and other investors. In a statement to Forbes magazine, Serhant explained that although the New York market is strong, it often takes time to sell real estate in a new building at the right price. By financing through the blockchain, traditional banks no longer have to be consulted for the money’s position, which puts a great deal of pressure on sellers and stakeholders. This attempt could therefore mean a groundbreaking development for future real estate projects.

There are thousands of blockchain brands out in the world today. To power through the noise, @AirSwap needed a meaningful, cohesive brand to effectively communicate our purpose and values to our customers. Here is our journey thus far: https://t.co/rZFugJXB9A

– Jay Kurahashi-Sofue (@jayks17) September 21, 2018

The tokenization by propellr and fluidity

In the tokenization process, tangible assets such as company shares, real estate or goods are included in the digital block chain by means of so-called “security tokens”. Later, it will be easier to transfer the asset to a buyer. The company Propellr offers a platform on which such security tokens can be created and managed. Propellr Securities is also a subsidiary of stockbrokers. Meanwhile, Fluidity offers technical solutions for brokers such as eToro, issuers and institutions wishing to token their tangible assets. In the Manhattan project, Fluidity uses its leading project AirSwap, a network to trade with Ethereum that works on a technology from wallet to wallet, so that no middleman is needed and no fees are charged.

The company now also announced that it would adjust AirSwap for stockbrokers to open them a second market for the sale of real estate and other assets. With the help of blockchain technology, these values can be recorded online and sold on a global marketplace. Thus, buyers and sellers are directly linked to each other, and this on a new system that leaves classic bank financing out of the equation.
The luxury complex in Manhattan will be the first large property to be financed and sold through tokenization. If the project succeeds, a new platform for real estate sales could soon form and the crypto currency Ethereum could experience a new boom.