With asset tokenization now a trend in the crypto industry, US-based blockchain startup Harbor has announced the launch of an institutional grade securities tokenization platform.
Harbor will use the platform to convert private securities such as real estate offerings and investment funds into digital tokens, thus making it easier for people to hold shares in the company offering the asset.
In the update, Harbor hailed their new platform as “the first addressing the security, compliance and ease-of-use requirements of institutional investors and asset owners.” The system has been built on a compliance and Token standard protocol developed by the startup and will rely on custody services provided by BitGO.
With the concept of securities tokenization, private investments have more liquidity and can be traded by global investors all-round the year on platforms that meet up with regulatory standards.
Unveils First Securities Tokenization Client
Harbor has listed its first client on their platform, a tokenized real estate investment trust (REIT) from Chicago-based Convexity Properties. A $20 million worth of private equity in a property offered by the company has been diversified into 955 shares (tokens) valued at $21,000 each on the Harbor platform.
Josh Stein, CEO of Harbor said in the release, “We are excited to partner with Convexity Properties to introduce a more accessible and liquid form of commercial real estate investment through the Harbor platform,” He subsequently expressed a conviction that the “lower entry points” being offered to investors make asset tokenization a promising prospect.
Harbor has rolled out the new platform seven months after it raised $28 million from a Series A funding round led by major venture capital firms like Andreessen Horowitz, Pantera Capital, and Founders Fund. The startup proposed to solve the challenges faced by investors and asset owners who want to raise funds from the global community.