Elevated Returns, an investment firm focused on digitizing tangible assets, recently announced that it will tokenize its pipeline of real estate assets in excess of USD $1B on Tezos.
Elevated Returns is known for tokenizing USD $18M of the St. Regis Aspen Resort, thereby giving stakeholders in “Aspen Digital” ownership in the luxury resort proportional to their token holdings.
Elevated Returns’ Aspen Digital offering was conducted on Ethereum. However, in collaboration with TQ and Securitize, a platform for compliantly digitizing securities on blockchains, Elevated Returns will conduct its future asset tokenization offerings on Tezos.
In this piece, I give a brief overview of advantages of tokenizing real assets, present shortcomings of issuing tokenized assets on some blockchains, and explain at a high-level how Tezos solves these problems and why it is the best platform to underpin such assets.Tokenized Assets
Assets like real estate and luxury art have high barriers to entry to participate in their respective markets. Unlike stocks and bonds which are traded on public exchanges, real estate and luxury art are socially exclusive, require large amounts of upfront capital (prohibitively expensive minimums), and are usually illiquid (extended holding periods, high transaction costs).
Blockchain-based tokens have a variety of use-cases (I won’t opine on their value here). They can be used as in-app currencies, means to incentivize specific actions, or to manage DAOs. However, as is most pertinent to this piece, tokens can also digitally represent the value of real, tangible assets.
Tokenization democratizes access to assets and enables more efficient markets by facilitating fractional ownership, unlocking global, anytime liquidity, and using smart contracts to create novel financial instruments and automate business processes.
Exchanges provide access to supported assets for those authorized to transact, either e...