With blockchain technology, virtually anything can be tokenized. tZERO and Alliance Investments will explore the tokenization of a luxury real estate development in the United Kingdom.
tZERO has established itself as a prominent player in blockchain innovation. Their focus lies in capital markets primarily. As such, their first major partnership in the UK could turn a lot of heads.
tZERO Partners Alliance Investments
Alliance Investments partnered tZERO to tokenize the River Plaza. This 180-unit luxury residential development located in Manchester will be the UK’s first real-estate backed STO.
It is also the first time Alliance Investments tokenizes real estate. The company has indicated it will continue to explore this business model for other projects across the UK.
The global appeal of real estate cannot be denied. It is believed the global real estate market was valued at $217 trillion back in 2016. This goes to show it is by far the most commonly “used” physical asset worldwide. By making real estate projects more accessible through innovative technology, an entirely new industry can be created.
On paper, it makes a lot of sense to tokenize this asset class. It is more efficient, cheaper, and autonomous. In terms of attracting a global audience, a security token backed by a holding company that owns a real estate asset can be appealing to the right crowd.
For the blockchain industry, this is another major step forward. Finding real-world use cases for distributed ledgers will elevate the technology to new levels. tZERO aims to revolutionize Wall Street by removing the need for traditional institutional market structures.