AlphaPoint announced at CoinDesk’s Consensus 2018 conference in New York City that it unveils its Regulated Asset Backed Token (RABT) framework for real estate, reported Coindesk on May 14.
The company wants to use blockchain as a conduit in order to bring more liquidity into the property market. To make this possible, AlphaPoint created a software allowing tokens to be traded freely, which are also in compliance with securities laws.
Muirfield Investment Partners, a real estate and private equity firm will collaborate with AlphaPoint to facilitate trading in the real estate industry.
AlphaPoint’s chief operating officer, Igor Telyatnikov said,
“As a technology company and infrastructure providers, we can blend both public blockchains and the tokenization of securities and assets of any type. There are huge penalties of the illiquidity discount, real estate being one of them.”
Real estate funds are not structured in a good way for investors because of their illiquidity, mentioned Muirfield’s founder, Thomas J. Zaccagnino.
Zaccagnino hopes that tokenizing the property industry will bring a “far more innovative and profitable investment vehicle.”
The company can use software to pay dividends and to make sure assets are transferred to the right people. It also plans to see everything go on the blockchain.
“We can use trusted execution environments and oracles to govern what addresses these assets can be moved to and from and be able to apply the rules and smart logic onto a public blockchain or private blockchain,” Telyatnikov mentioned.