Startup Harbor tokenizes assets of iCap real estate funds for $ 100 million

Startup Harbor signed an agreement with iCap Equity to create ERC-20 tokens, which are assets of iCap real estate investment funds worth more than $ 100 million.

According to the company, this step will allow 1,100 investors and 17 iCap placements agents to conveniently carry out transactions in investment funds that invest in real estate.

In April, Harbor offered to sell $ 20 million worth of token stocks that would allow investors to own part of a large hostel for students at the University of South Carolina. However, the proposal was withdrawn due to the fact that, according to a Harbor spokesman, “the issuer was unable to agree on favorable terms with an existing mortgage lender.”

Harbor CEO Josh Stein said issuers should have direct relationships with their investors, and this is the area that interests the company in partnership with iCap.

“We have evolved into a support platform with the goal of helping issuers and broker-dealers take advantage of technology and liquidity. We created a platform designed to manage fundraising, communication with investors and liquidity options, including private markets, ”said Harbor Marketing Director Kevin Young.

For iCap investors, tokenization of real estate funds means more liquidity for their investments. Investors who purchase iCap assets typically face a blocking period of three to five years. During this period, they can either hold assets or find investors willing to take on the remaining blocking period. Presenting investments as tokens allows investors to exchange assets, bypassing most of the documents and commissions.

“Using the blockchain will help place investors with different calculation options in one fund. This will help investors in need of liquidity to get an early exit and at the same time allow other investors to access alternatives previously closed to them, ”said Michael Bradley, CEO of Bradley Wealth, an investment company.

Recall that in July, the blockchain-start-up Fundament received permission from the German regulator to issue the first tokenized bond secured by real estate, which can be offered to retail investors.