A big debate for financial government regulators regarding cryptocurrencies has been how exactly to classify them. The new form of digital currency, is some ways could be considered a security, property or more broadly, a store of value. Because of this blockchain networks have designed new programming for the tokens to restrict them to certain behaviors so that they can guarantee regulators the token will adhere to financial compliance.
Through this development in financial technology, a hybrid of digital currency and traditional assets has arisen. Tokenized assets are essentially digital representations of an existing asset, such as property. Inveniam Capital Partners of New York, United States, will be launching some of the biggest tokenized asset auctions to date using their newly created Token Platform Invenium.io.
“We built our entire software, our stack, everything we do, the way we tokenize the instrument is so the enormous amount of data that’s associated with the financial instrument … can be aggregated and is attached to the token.” - O’Meara, chairman and chief executive officer of Inveniam Capital Partners
The platform creates ER-20 based representations of debt instruments that will be tradable on regulated blockchain exchanges that support this token format. The smart contracts initialized on Inveniam.io enforce trades only between approved buyers and sellers and managing the definitive ledger for the issue.
$280 Total Through Dutch Auction
The company will be auctioning a total of four real estate assets using a form of auction called a Dutch auction. These are public offering structures in which the price of the offering is set after taking in all bids to determine the highest price at which the total offering can be sold. Investors will place a bid for the amount of cryptocurrency they are willing to buy in terms of quantity and price. The company has set minimums of $500,000 per bid, with a minimum total holding of $10 million worth of cryptocurrency for each investor interested in making bids.
The first property to be auction a building in Miami, Florida U.S. which is currently occupied by a WeWork co-working space branch. The estimated property value of the building is 65.5 million. This will likely represent the single largest tokenized asset auction made of all time. Invenium will be accepting bids paid for only in cryptocurrency, accepting the top 50 cryptocurrencies by market cap at launch. In addition, the company will tokenize shares for a student housing facility in North Dakota ($90 million), a North Dakota water pipeline ($50 million), and a multi-family housing facility in southwest Florida ($75 million).
By: BGN Editorial Staff