tZERO, the pioneer in blockchain development and liquidation of cryptocurrencies, has announced its partnership with the New York-based real estate development company ROI group to kick-start a digital security project for a Dubai-based luxury hotel and residential development. The ROI group has multi-billion dollars in assets under management, with properties located in various parts of the world like the US, States, Canada, and the Middle East. The platform specializes in real estate investments, land development, and passive co-investing. With this collaboration with ROI, tZERO aims to digitize up to $50 million of securities in a luxury hotel in Dubai on the Tezos Blockchain.
According to the contours of the partnership, the digital security will be deploying the smart contract technology of tZERO and the management consultancy services of Megalodon on the Tezos ecosystem. This will, in turn, help investors to access secondary liquidity for traditionally illiquid assets on Tezos, such as real estate. Megalodon is a UAE-based boutique management services consultancy firm specializing in consultancy services particularly aimed at fintech and digital securities.
ROI’s launch of the digital security on Tezos is scheduled for Q3 of 2021, while the hotel’s development will be supposedly completed by Q4 of 2023. It will be the first digital security launch of ROI that is tradeable on the tZERO ATS broker-dealer, subject to legal and regulatory compliances, thus offering investors secondary liquidity.
Tezos is a leading blockchain network that has been associated with digital securities for quite a long time, and thus tZERO aims to bank this opportunity to provide secondary liquidity to various commercial real estate projects and pre-IPO companies. It is smart money with a self-upgradable blockchain with a proven track record that seamlessly adapts to future innovations without any network disruptions. It thus helps to provide real estate digital security offerings to organizations that need them the most. A real estate digital security offering represents raising capital by issuing digital securities representing ownership and economic interests in an underlying digital asset. This provides secondary liquidity for investors on a secure and regulated trading platform which is very important for traditionally illiquid assets like real estate. tZERO thus can democratize access to private capital markets.
Regarding this, the CEO of tZERO, Saum Noursalehi, said,