AirSwap a decentralized cryptocurrency trading platform recently cracked a deal and joined hands with Propellr to bring real-world assets like real estate markets online through tokenization.
AirSWAP reportedly announced the new and an exciting partnership with the FINRA registered broker-dealer Propellr- a servicing and management platform for digitally held assets through a blog post.
AirSWAP serves as a decentralized trading marketplace where buyers, sellers, people, and programs can connect and trade wallet to wallet using Ethereum based smart contracts. The platform also allows its users to build storefronts and auctions on its decentralized network.
This collaboration will comprehend the two firms use AirSwap’s peer-to-peer trading protocol to create a platform that aids brokers and their clients to tokenize securities and trade these crypto tokens while obeying the legal and securities regulations.
Based on the announcement Michael Oved, co-Founder, AirSwap stated:
“Our focus will begin by tokenizing private securities in the New York real estate market. 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.”
Further on while emphasizing on the use of disruptive technology and its benefit to the secondary market transactions he went on to say:
“The ability to store and transfer value in a digital token already had profound implications on capital formation and its adoption will only continue to grow with time. In the near term, applying this technology to new asset classes can bring immediate benefits.”
However, AirSwaps is not the first to service the real estate backed token there are other giants in line like Indiegogo, a crowdfunding firm had announced earlier in August that it will expand its initial coin offering (ICO) and list the services to include security tokens, and the first such token offering (STO) is now live on its platform. It partnered with a broker-dealer to rout its first security token offering (STO), which points to sell tokens that signify equity in a luxury resort in Aspen, CO.
Also, Swarm a cryptocurrency startup has started to release its tokens that shows equity in privately-held tech companies such as stock trading platform Robinhood, serving another class of secondary market securities more liquid.