Harbor Tokenized $100M in Real Estate Funds
Harbor, a security token and alternative investments platform, has tokenized the real estate funds of iCap Equity.
Harbor, a platform for alternative investments, has successfully tokenized real estate funds, in partnership with iCap Equity. The fund, which initially offered direct token sales and ICO projects, pivoted to security tokens.
The tokens will be distributed in private placements and rely on iCap Equity to create a secondary market. In general, so-called security tokens have not been available on mainstream crypto exchanges.
“iCap provides high-yield investment opportunities for investors, but those investments typically come with a 3 to 5-year lock-up period because they are based in real estate,” said Chris Christensen, CEO of iCap Equity.
“Now, with Harbor, we are able to provide the same strong returns, but also an option for investors to more easily liquidate if desired. It provides the best of both worlds, and is a game-changer for not only real estate-based investments, but the entire alternative investment industry.”
The real estate of iCap Equity is derived from small to medium builders in the Seattle area. The equity firm builds a series of funds that offer bridge financing to builders, while securing small-scale, high-return opportunities to its investors. The access to the funds, however, is limited to qualified investors. For its funds, iCap reaches only around 1,100 high net worth clients, a very different profile from some of the direct crypto investors.
Security tokens have lagged, despite the initial excitement, and so far security token sales have failed to repeat the success of ICOs. This is due to the increased regulatory burden, as well as the lack of easy and fast listing.
Harbor has partnered with Gemini, to bring Gemini Dollar (GUSD) for the purchase of tokens. However, GUSD has decreased its supply lately, down to only 8.3 million coins, as liquidations led to coin burns and a dramatic drop in supply. Thus, GUSD is not offering enough liquidity to the real estate tokenization market.