Elevated Returns Switches to Tezos as $1B of Real Estate Prepared for Tokenization
Elevated Returns, a blockchain company, earlier announced a move from Ethereum to Tezos, Sociable reported. The move is expected by analysts as the company is preparing to tokenize $1 billion worth of property on the Tezos blockchain.
These and more details have been announced through a press release done by the company. Stephane De Baets, Belgian entrepreneur and founder of the company, steered it to become a 'first mover.' It first created a tokenized property through the 'partial' tokenization of St. Regis, a resort in Aspen, Colorado. It then put the tokens up for sale to investors.
The tokenization--or breaking down of properties into purchasable tokens-- create opportunities for small-scale investors to buy into expensive assets. A study showed 8.25% of Americans are actually accredited investors. However, the barrier is home prices; as the prices become steep, investors find it too difficult to invest in them.
Elevated Returns aims to change all that with its tokenized real estate offerings. ER has created a steady pipeline of these assets as it chose Tezos to become its partner, according to Blocktribune. In the past, Elevated Returns distributed the St. Regis tokens through ethereum. Now, it is distributing tokens once again, but through blockchain.
Tezos is a 'self-amending' blockchain platform that also caters clients with smart contracts. Individuals and organizations can transact with each other through the platforms of digital currency. Elevated Returns chose to work with the Tocqueville Group (TQ) in switching to Tezos, a New York City-based company, to tokenize its assets.
In the first step to its expansion, it also added Bangkok, Thailand company Seamico Securities to help with regulatory licenses, as well as the distribution, to the greater Asian territory. The region was hailed by the company for being at the forefront of regulations, especially in dealing with digital assets.
As tokenization becomes more popular, more people will find it easier to get into real estate. This could potentially result in helping people gain better access to markets that were once restricted because they were 'too expensive.' It also gives ordinary investors the chance to bring a little diversity to their portfolio and compete with the 'big boys' of real estate.
Partnering with the Tezos blockchain is natural, the company states. They argue that it's better for the company, in the long run, to have Tezos help with tokenization, future-proofing the company for when real estate finally decides to become fully integrated with real estate-disrupting technology.