Blockchain-based real estate investment platform, AssetBlock announced in a landmark move today that it will tokenize $60 million worth of real estate on the Algorand blockchain.
The real estate to be tokenized reportedly include hotel properties under the control of hotel asset managing firm, Lodging Capital Partners (LCP), making the company a part of the latest partnership.
Meanwhile, the primary purpose of the deal as per the announcement is to allow internet-savvy investors to buy into real estate deals that usually were not available to the public until the advent of blockchain technology.
The release noted in terms of statistics that until now, 80% of the $7 trillion commercial real estate investment market in the U.S. is controlled by institutional investors.
That figure clearly explains that the number of retail investors buying real estate is low, something that AssetBlock hopes to change by allowing its users to invest in tokenized real estate by directly purchasing their desired units using ALGO, the native cryptocurrency of the Algorand blockchain.
While commenting on what is an exciting moment for AssetBlock, the startup’s CEO Mike Liddell further explained what their role is for the new-age tokenized real estate ecosystem.
According to him, the startup is building “a solution that brings traditional and non-traditional real estate investors and professionals together efficiently, creating more opportunities for all involved.”
He also hinted that the partnership with Lodging Capital to tokenize such a significant value of real estate property is the first of many as the startup looks to rack up several new partners soon.
In another development regarding the tokenization of real estate, Stmarket.co reported yesterday that the Real Estate Insitute of Queensland (REIQ) partnered with a local startup, Igloo to launch a blockchain-based tenancy agreement platform.