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tZERO Partners With Alliance Investments to Tokenize $25M Real Estate Project in UK

In a press releaseby Businesswire on Oct. 30, tZERO announced that it has collaborated with Alliance Investments for the sole aim of tokenizing River Plaza worth around $25 million.

As a major company in blockchain innovation for capital markets, tZERO partnered with the UK-headquartered real estate investment company to tokenize a 180-unit luxury residential development located in Manchester which makes it become the first UK real estate-backed security token offering (STO) which is expected to be launched in Q1 of 2020.

Saum Noursalehi, CEO of tZERO, commented on the development expressing his belief that it will revolutionize the real estate market and also lauded the decision of Alliance Investments. Noursalehi said:

“We believe that asset tokenization will revolutionize the real estate sector. We applaud Alliance Investments for spearheading one of the world’s first real estate-backed security token offerings. Tokenization of real estate will democratize access and greatly enhance liquidity for this asset class.”

Around $25 million of the value of River Plaza will be tokenized through the use of tZERO’s tokenization technology and Megalodon’s advisory services and will be issued on the Tezos Blockchain.

In this regards, the CIO of Alliance Investments, Rani Zahr said:

“We view tZERO as a leader in blockchain innovation and asset tokenization solutions and are excited to partner with them on our first STO. We hope to continue to collaborate with tZERO to see out our real estate tokenization plan.”

He stated that Alliance Investments would continue to be on the leading side of innovation. He added: “We strive to stay ahead of the innovation curve and believe that security token offerings are the future. They are more efficient, cost-effective, autonomous, and democratic in comparison to traditional financing.”

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MUFG Seeks Seamless Automatic Securities Settlement via Blockchain

MUFG (Mitsubishi UFJ Financial Group), one of Japan’s biggest banking institutions, has announced the establishment of an ST (Security Token) Research Consortium intended at protecting investors’ rights, as well as offering fund settlement and seamless automatic securities settlement via blockchain.

Blockchain is touted to be ideal in tackling counterparty risk that is presently a challenge when it comes to fundraising through tokenization.

MUFG has partnered with 21 other companies in this initiative, such as KPMG, Accenture, NTT, and Mitsubishi.

MUFG acknowledges that this development is based on the technological advancements that have instigated ongoing diversification in financial transaction methods, such as the rise of ICOs and increased circulation of crypto-assets.

MUFG, therefore, sees the combination of smart contract technology and security token as ideal in prompting efficient financial transactions.

ST research consortium’s objectives

The consortium aims at enabling both management and fundraising on the same platform, as well as utilizing digital cash for settlement. Some of the assets to be used include securitized products and bonds.

The ST Research Consortium also wants to venture into 24/7 trading with the absence of special terminals though it will be available to overseas, retail, and domestic investors.

The announcement also mentions programmable money based on its instant settlement capabilities. Expressly, immediate delivery or payment is helpful in the reduction of counterparty risk.

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HSBC to Initiate Institutional Digital Assets Custody Service in 2024

HSBC Holdings plc has declared its strategic move into the digital asset sphere by announcing its intention to introduce a new digital assets custody service specifically for institutional clients. The service, anticipated to go live in 2024, will be designed to cater to the evolving needs of clients investing in tokenised securities.

The forthcoming custody service will operate in synergy with HSBC’s existing digital asset infrastructure, including the HSBC Orion platform, which is responsible for issuing digital assets, and the recently unveiled mechanism for tokenised physical gold. This suite of services is set to offer HSBC’s institutional clients a comprehensive ecosystem for their digital asset requirements.

To deliver this service, HSBC has partnered with Metaco, a Swiss-based enterprise technology firm. Metaco will integrate its Harmonize platform into HSBC’s digital custody service, ensuring a secure and unified management system for digital assets operations.

HSBC’s venture into digital custody services is a response to the burgeoning demand from asset managers and owners for sophisticated custody and fund administration for digital assets. This development is a part of HSBC’s broader digital, data, and innovation strategy headed by Zhu Kuang Lee.

The bank’s focused approach will be on security tokens, rather than cryptocurrencies such as Bitcoin or stablecoins like Tether, delineating a clear distinction in its digital asset services. Security tokens are essentially digital representations of securities issued and transferred on blockchain technology, a domain where HSBC has been actively scouting talent since early 2022.

This initiative by HSBC is indicative of the financial industry’s gradual but definitive shift towards integrating blockchain and digital assets into traditional banking frameworks.

HSBC’s foray into digital asset custody services for institutional clients reflects the bank’s commitment to digital innovation and its foresight in adapting to the digital transformation of the financial sector. The service, backed by HSBC’s robust platforms and in partnership with Metaco, is set to launch in 2024, signaling a significant move by one of the world’s largest financial organizations into the domain of tokenised securities.