Liquefy, a blockchain technology provider, has recently announced a deal to tokenize a luxury hotel located in London. The deal has a reported total of $1 billion worth of real estate assets in the pipeline, awaiting tokenization.

The Tokenization of a Luxury Hotel in London Explained

Liquefy is a technology provider for the issuance and management of security tokens.

The company has recently inked a deal with a consortium of Gulf families to tokenize real estate.

The first property to be tokenized will be a $600 million luxury hotel, located in the Mayfair district of London. The hotel has received numerous awards and is known for its views of Hyde Park and Mayfair.

As part of the deal, security tokens will be issued which represent ‘economic interests’ in the hotel.

The Gulf families reportedly have a total of $1 billion worth of real estate assets in the pipeline.

According to Adrian Lai, CEO of Liquefy,

“We are excited to be working on this fantastic opportunity with top families from the Gulf, and beginning with a Mayfair property of such high quality. As blockchain technology progresses we’re seeing accelerating interest in digital securities from the real estate sector. The deal sizes and pipeline have grown exponentially over the past year. We’re certain that there’s huge potential for technology to enable new business models in the real estate ecosystem that lower operational costs and increase liquidity.”

Security tokens— which are also referred to as digital securities— have already seen success with real estate. Properties in the United States, France, and Japan are experiencing the benefits of tokenization.

When compared to other digital assets, the primary advantage of security tokens is regulatory compliance.

So far, security tokens have been used to compliantly raise nearly $1 billion through real-world assets such as real estate, equity, investment funds, and even fine art.

What do you think about Liquefy providing the technology to tokenize a landmark hotel in London? We’d like to know what you think in the comments section below.

Image courtesy of Design Curial.