Harbor Rolls Out Securities Tokenization Platform
Blockchain startup Harbor has launched an institutional-grade platform for tokenizing private securities .
San Francisco-based blockchain startup Harbor has launched an institutional-grade platform for the tokenization of private investments, such as real estate.
The Andreessen Horowitz-backed company said in a blog post last week that its platform is designed to transform private securities into “a more accessible and liquid form of private investment.” Harbor described its new offering as “the first addressing the security, compliance and ease-of-use requirements of institutional investors and asset owners.”
The platform rests on Harbor’s compliance protocol and Regulated Token (R-Token) standard. Transactions comply with existing securities and know-your-customer laws. To ensure enterprise-grade security, the startup has partnered with custody services provider BitGo.
The first offering on Harbor’s platform is a tokenized real estate investment trust (REIT) from Convexity Properties , the property investment arm of trading group DRW. The REIT represents $20 million of private equity in The Hub at Columbia - a luxury student residence at the University of South Carolina. A total of 955 shares will be tokenized in a ratio of one share per token, with each token priced at $21,000. The T-REIT is open to accredited investors in the US and select jurisdictions.
“Harbor is transforming private investments by making it easier and more cost effective for issuers and broker-dealers to syndicate more widely, raising capital from a potentially broader and more global investor pool. In turn, investors can access opportunities previously out of reach through lower entry points, and co-invest alongside premier companies like Convexity Properties with the potential for enhanced liquidity,” Harbor CEO Josh Stein commented.
Back in April, Harbor raised $28 million in funding from major venture capital investors such as Andreessen Horowitz, Founders Fund, and Pantera Capital. The company used the proceeds to further develop its native token and security tokenization platform.
In a similar move earlier this year, crowdfunding website Indiegogo made its first security token sale. The Aspen coin was a tokenized common share in the luxury St Regis Aspen Resort in Colorado.