• Latest
Harbor Tokenizes Real Estate Funds Worth $100 Million on Ethereum

Harbor Tokenizes Real Estate Funds Worth $100 Million on Ethereum

September 16, 2019
ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
mintable launches industry changing gas free minting service on ethereum

Mintable Launches Industry Changing Gas Free Minting Service on Ethereum

May 1, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
nfts: the next musical revolution

NFTs: The Next Musical Revolution

April 24, 2022
things you should know before investing in nfts

Things You Should Know Before Investing in NFTs

April 24, 2022
what are wrapped tokens?

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?

What is the future of Ethereum (ETH)?

April 22, 2022
green gaming

Everything You Need to Know About Play-to-Earn on Algorand in 2022

April 21, 2022
$ape going bananas as rumors of upcoming land sale of bayc metaverse gather momentum

$APE Going Bananas As Rumors of Upcoming Land Sale of BAYC Metaverse Gather Momentum

April 21, 2022
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
CoinNewsDaily
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
CoinNewsDaily
No Result
View All Result
Home Business

Harbor Tokenizes Real Estate Funds Worth $100 Million on Ethereum

coinnewsdaily by coinnewsdaily
September 16, 2019
in Business
0
Harbor Tokenizes Real Estate Funds Worth $100 Million on Ethereum
190
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Related articles

ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022

Harbor has pivoted from helping companies issue security tokens to helping them tokenize existing securities.

Announced Monday, the startup has created tokens on the ethereum blockchain representing the shares of four real estate funds worth $100 million.

The move is intended to make these private securities easier to trade for the 1,100 investors that hold them, along with 17 broker-dealers and 17 placement agents that work with the funds’ manager, iCap Equity.

“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.

The news also represents a strategic shift for Harbor, from helping clients raise funds by selling security tokens to providing an infrastructure layer for such instruments.

Harbor “evolved from crowdfunding and tokens to being the Salesforce.com” of the security token industry, said Josh Stein, CEO of San Francisco-based Harbor.

Initially, the company tried to build tokens backed by real-world assets. It reckoned that if investors were interested in initial coin offerings (ICOs) issued by projects with only a promise, they would “be excited” for backed tokens, Stein said.

However, he added:

“The overlap between investors demanding tokens and investors interested in security tokens was zero. People were buying tokens but they weren’t buying it to invest, they were buying it to speculate.”

Last year, Harbor partnered with DRW Holdings’ real estate wing to facilitate the sale of nearly 1,000 tokenized shares in an apartment building. However, the deal fell apart earlier this year due to issues between the mortgage lender and issuer.

Lockup period

Harbor is providing a user platform for the investors, broker-dealers and advisors, which includes a private marketplace they can use to trade the securities.

Christensen said the funds are “high-yield, [which] usually requires a lockup” under which investors contractually cannot sell their shares for three to five years.

“We just knew if we can provide measured liquidity for them and allow us to continue our business model [but] allow them to … exit as needed, that would be cutting-edge,” he said.

Typically, iCap investors buy securities and commit to the multi-year lockup. However, investors could need their money back before that period ended, Christensen explained. Under its old system, these investors would have to find another investor who would be willing to purchase the securities and commit to the remainder of the lockup period.

The process to find an investor interested in purchasing these securities and then transfer them was time-consuming and costly, but a market already exists: Christensen said his company has previously facilitated $2 million in trades for these funds.

“What Harbor does is they automate this entire process,” he added. “Those who want to come in come in, those who want to exit can do that.”

The 17 broker-dealers that now have access to the platform include Bradley Wealth, an investment advisor.

“It’s never going to be like a public market, but we can take something that’s illiquid or semi-liquid and make it more liquid,” Stein said.

‘Nobody’s marketing it’

iCap operates under Rule 144 of the Securities Exchange Act of 1934, which requires a one-year mandatory lockup period for securities sold, separate from the restrictions the firm imposes, Christensen said.

“Once you’ve held a security for one year, it can be freely tradeable,” he said.

What is interesting, Stein said, is that after this first year ends, non-accredited investors can trade the securities (though iCap approves the platform’s users, so it is not open to the general public).

“I don’t think it’s a goal but what it says to these broker-dealers and RIAs [is] that they have this investment … they can get their non-accredited clients into it,” he said.

He noted that unlike ICOs or other crowdfunding efforts, these fund shares, now represented by ERC-20 tokens on ethereum, are passive instruments.

“It’s not like when you think of ICOs or crowdfunding where somebody’s pushing an investment,” he said. “It democratizes it but nobody’s out there marketing it.”

Nevertheless, Stein said the new strategy is aligned with Harbor’s broader mission, concluding:

“What we’re hoping to do is increase access … in real estate and other [areas], which was kind of the promise of security tokens to begin with. We’re just going about it a different way.”

Josh Stein image via CoinDesk archives

Credit: Source link

Tags: BusinessCryptoCrypto Business
Share76Tweet48
Previous Post

Facebook’s David Marcus Responds to Critics Over Libra ‘Threat’

Next Post

Cryptocurrency Dash to Begin Trading on Coinbase Pro

coinnewsdaily

coinnewsdaily

CoinNewsDaily.com is an online Crypto Coin News Website that aims to provide latest trendy news from market and around the world.

Related Posts

ygg sea surpasses 10,000 scholarships in just six months of launch
Alt Coin

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin
Alt Coin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications
Alt Coin

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin
Alt Coin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
what are wrapped tokens?
Bitcoin

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?
Alt Coin

What is the future of Ethereum (ETH)?

April 22, 2022
Load More
Next Post
Cryptocurrency Dash to Begin Trading on Coinbase Pro

Cryptocurrency Dash to Begin Trading on Coinbase Pro

Categories

  • Alt Coin
  • Bitcoin
  • Business
  • Ethereum
  • ICO
  • Litecoin
  • Mining
  • NFT
  • Ripple
  • Tech
  • Trading

What New here?

  • YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch
  • Mintable Launches Industry Changing Gas Free Minting Service on Ethereum
  • 5 Projects Enabling Smart Contract Development on Bitcoin

Subscribe to Get More!

Loading
  • About Us
  • Contact Us
  • Privacy & Policy

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

  • bitcoinBitcoin(BTC)$19,560.300.78%
  • ethereumEthereum(ETH)$1,066.831.17%
  • tetherTether(USDT)$1.000.04%
  • binancecoinBNB(BNB)$222.915.87%
  • cardanoCardano(ADA)$0.4569611.37%
  • rippleXRP(XRP)$0.3185030.29%
  • SolanaSolana(SOL)$33.104.25%
  • dogecoinDogecoin(DOGE)$0.0661521.97%
  • polkadotPolkadot(DOT)$6.79-0.02%
  • daiDai(DAI)$1.000.09%
  • tronTRON(TRX)$0.0652292.25%
  • Shiba InuShiba Inu(SHIB)$0.0000102.49%
  • leo-tokenLEO Token(LEO)$6.052.06%
  • matic-networkPolygon(MATIC)$0.4827374.81%
  • litecoinLitecoin(LTC)$51.34-0.35%
  • FTXFTX(FTT)$24.622.70%
  • OKBOKB(OKB)$12.102.08%
  • CronosCronos(CRO)$0.1141561.74%
  • chainlinkChainlink(LINK)$6.111.49%
  • stellarStellar(XLM)$0.1104834.58%
  • cosmosCosmos Hub(ATOM)$7.563.75%
  • algorandAlgorand(ALGO)$0.3071255.63%
  • moneroMonero(XMR)$113.81-0.60%
  • ethereum-classicEthereum Classic(ETC)$14.701.07%
  • bitcoin-cashBitcoin Cash(BCH)$101.420.59%
  • vechainVeChain(VET)$0.0224071.97%
  • Internet ComputerInternet Computer(ICP)$5.262.06%
  • tezosTezos(XTZ)$1.37-0.59%
  • filecoinFilecoin(FIL)$5.383.98%
  • theta-tokenTheta Network(THETA)$1.183.19%
  • ElrondElrond(EGLD)$52.0110.30%
  • bitcoin-cash-svBitcoin SV(BSV)$53.70-1.43%
  • eosEOS(EOS)$0.911.58%
  • paxos-standardPax Dollar(USDP)$1.000.10%
  • makerMaker(MKR)$896.592.97%
  • AaveAave(AAVE)$56.923.01%
  • iotaIOTA(MIOTA)$0.2656203.54%
  • huobi-tokenHuobi(HT)$4.77-1.68%
  • zcashZcash(ZEC)$54.051.44%
  • basic-attention-tokenBasic Attention(BAT)$0.40897411.96%
  • neoNEO(NEO)$8.352.21%
  • zilliqaZilliqa(ZIL)$0.0379032.08%
  • havvenSynthetix Network(SNX)$2.240.69%
  • wavesWaves(WAVES)$5.051.18%
  • dashDash(DASH)$42.060.05%
  • PancakeSwapPancakeSwap(CAKE)$3.074.60%
  • KusamaKusama(KSM)$48.143.99%
  • Elrond ERDElrond ERD(ERD)$0.0259290.00%
  • nemNEM(XEM)$0.0380342.65%
  • CompoundCompound(COMP)$47.512.95%
  • ethlendAave [OLD](LEND)$4.103.48%
  • qtumQtum(QTUM)$2.793.73%
  • bitcoin-goldBitcoin Gold(BTG)$15.250.69%
  • omisegoOMG Network(OMG)$1.792.94%
  • golemGolem(GLM)$0.2370837.45%
  • ontologyOntology(ONT)$0.2277284.18%
  • SushiSushi(SUSHI)$0.98-0.47%
  • yearn-financeyearn.finance(YFI)$5,349.811.64%
  • umaUMA(UMA)$2.483.39%
  • digibyteDigiByte(DGB)$0.0090772.49%
  • UniswapUniswap(UNI)$2.4438.80%
Posting....