tZERO to Tokenize Around $18 Million Worth of NYCE’s Shares
tZERO, an alternative trading system for security tokens, made an interesting announcement on June 30. It announced a partnership with real estate crowdfunding company, NYCE Group, to tokenize around $18 million worth of the firm’s shares.
The NYCE Group’s stock will be tZERO first new listing since launching its ASPN pairing in August 2020. The security token exchange partnered with Aspen Digital Inc. to enable trade for Aspen’s digital security. Aspen Digital’s August 2018 token sale was widely considered to be the first real estate security token offering in history. The firm issued 1.675 million shares at $20 each.
tZERO and its partner
Let’s get back to tZERO’s latest announcement. The security token exchange will support secondary trade for NYCE’s tokenized common shares. But first, the NYCE Group must complete its upcoming Regulation A+ offering, subject to regulatory approval. The company’s shares will be tokenized using tZero’s smart contract technology. Thanks to its partnership with tZERO, NYCE Group will be able to provide investors with liquidity optionality.
Philip Michael and FC Barcelona football player Martin Braithwaite founded the NYCE Group. The company’s app allows retail investors to own fractionalized shares in properties from its $260 million portfolio. This real estate company launched its app in March. The purpose of this real estate company is to create 100,000 high-net-worth stakeholders of color by 2030.
The company finalized its $1 million Regulation Crowdfunding (Reg CF) offering in October 2020. NYCE Group broke a record for the fastest Reg CF offering. The company raised a lot of money.
Of the tokens on the exchange, volume for ASPN consistently lagged behind tZERO’s native token TZROP and Overstock’s digital security OSTKO. TZROP was the most-trade security in May with nearly $2.7 million worth of trade. Its market cap is currently roughly $140 million. TZROP is the 229th-largest cryptocurrency asset by capitalization.
The security token sector is actively developing with a monthly volume increasing from less than $220,000 to roughly $22 million during August. Nonetheless, monthly trade activity has since declined more than 75% with less than $5 million in May.
A recent trend is the self-custody of securities and the appearance of bearer financial instruments. Tokenization of financial instruments allows investors to remove securities from an exchange as well as to send them to a new exchange with a private key.
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