In a bid to aid the tokenization of one of the biggest real estate markets in the world, decentralized cryptocurrency trading platform AirSwap has announced a new partnership with FINRA registered brokers, Propellr.
AirSwap is a decentralized global marketplace for trading Ethereum based tokens, the platform also allows its users to build storefronts, marketplaces, and auctions on its decentralized network.
As CCN reported, AirSwap raised about $20 million during an initial coin offering (ICO) presale held last August.
According to a date from CoinSchedule, the blockchain company had an estimated net worth of $25 million following the conclusion of the firm’s public sale, in September last year.
In the early days of this month, AirSwap announced the creation of an over-the-counter (OTC) cryptocurrency trading product, which is currently in a private beta phase.
AirSwap develops interest in the New York real estate market
AirSwap has shown great interest in the New York real estate market. New York is well known for having some of the highest land prices in the United States.
In a statement, AirSwap highlighted how its blockchain technology can benefit secondary market transactions:
“Ultimately, we hope to reduce the time to complete secondary market transactions of private securities from months to days, with the actual execution, clearing, and settlement taking place in a matter of minutes. With a non-custodial, no order book model, our technology is far better positioned for the private securities market than alternatives that take custody, use order book matching engines, and wrongly assume that private securities will trade with the same frequency as publicly traded securities or cryptocurrencies.”
AirSwap is not the only blockchain company who believes that real estate, a notoriously illiquid capital asset class, will greatly benefit from tokenization.
Recently, Indiegogo partnered with a broker-dealer to host its first Security Token Offering (STO), which is aimed at selling tokens that represent equity in a luxury resort in Aspen, CO.
Similarly, cryptocurrency startup Swarm recently began issuing tokens that represent equity in privately-held companies such as stock trading platform Robinhood, in order to make the class of secondary market securities more liquid.
While AirSwap is mostly seen as a decentralized market, Propellr, on the other hand, empowers firms to raise, structure, and service capitals for discrete and pooled transactions through its fully integrated broker-dealer.
AirSwap and Propellr will proceed to focus their efforts and resources on the New York real estate market, although at press time, details on how they aim to achieve this remain slim.
This partnership hopes to leverage AirSwap’s peer-to-peer trading protocol combined with the FINRA registration of Propellr to allow brokers to tokenize securities.
The platform will also be used to trade the variety of virtual currencies available on AirSwap’s platform in a manner that complies with securities regulations.