Harbor Partners With Real Estate Firm to Tokenize $100M on Ethereum
Harbor, a platform for alternative investments which initially helped companies issue security tokens, has pivoted to helping them tokenize existing securities. In partnership with iCap Equity, Harbor, announced it will create ERC-20 tokens that represent iCap’s over $100 million real estate funds.
The tokens will be distributed in private placements and rely on iCap Equity to create a secondary market. In general, so-called security tokens have not been available on mainstream crypto exchanges. According to a company statement, this move will allow iCap’s 1,100 investors and 17 placement agents to conveniently trade the real estate funds.
“For years, we’ve been looking for ways to create the best investment experience we can and for us that means providing liquidity for them,” said Chris Christensen, CEO of Bellevue, Washington-based iCap.
Security tokens have lagged, despite the initial excitement, and so far security token sales have failed to repeat the success of ICOs. This is due to the increased regulatory burden, as well as the lack of easy and fast listing.
Harbor has partnered with Gemini, to bring Gemini Dollar (GUSD) for the purchase of tokens. However, GUSD has decreased its supply lately, down to only 8.3 million coins, as liquidations led to coin burns and a dramatic drop in supply. Thus, GUSD is not offering enough liquidity to the real estate tokenization market.