Dubai-based real estate company Arms & McGregor is launching a tokenization platform that will enable people to own and exchange property assets using digital tokens.
Arms & McGregor has teamed up with Blocksquare, a Slovenian blockchain startup, to develop the platform, which it claims would link to the decentralized finance (DeFi) liquidity pool. Users will pledge one token in exchange for the right to lend or trade another, which they will then monetize, in these pools of cryptocurrency tokens.
The UAE firm’s move is a first step toward making asset liquidation feasible and straightforward, while also automating the transaction process.
Denis Petrovcic, the Co-Founder & CEO of Blocksquare said, “With this partnership, property owners in the GCC will for the first time gain the ability to extract liquidity from DeFi markets simply by uploading their real estate property to the blockchain. It also opens up a new liquidity generator to fund ambitious megaprojects as traditional funding may fall short and not be as feasible.”
“The GCC real estate sector especially in the UAE has proved its resilience and overcame major challenges since the 2009 financial crisis and the recent pandemic. With the launch of the new property tokenization platform, we aim to revolutionize the way property developers fund and sell projects; that will enable them to retain control over their projects. Property owners will also be able to sell portions of their property and liquidate the necessary rather than the whole asset.”
Real estate is a global industry of around $300 trillion which will benefit from such an approach, but at the same time will give a new dimension to blockchain and tokenization.
The new platform represents Arms & McGregor International Realty’s attempt to bring new technology and tokenization to the real estate market, as evidenced by the company’s Real Estate 6.0 asset class, which was published earlier.