Announced Wednesday, the blockchain startups will tokenize portions of properties financed by U.K.-based Alliance Investments, which will then be opened up to investors.

Overstock’s security token platform tZERO and the Tezos Foundation have partnered on a project that will tokenize £500 million ($643 million) in planned real estate development.

Rani Zahr, CIO of Alliance Investments, said in a statement:

“Raising funds through an STO is more efficient, cost-effective, autonomous and democratic than traditional financing. We believe that we are at the forefront of a technological change that can disrupt the current funding paradigm.”

The first offering is due in Q1 2020, when tZERO will issue security tokens that represent £20 million in equity of a water-front development currently under construction in Manchester.

“This one building, a large multi-storage development, is a first for Alliance, but represents a large pipeline that they intend to fund using STOs security token offerings”, Roman Schnider, chief financial officer at The Tezos Foundation, told CoinDesk.

The Tezos protocol will serve as the base infrastructure to “deploy, transfer and store the digital assets and smart contracts”, which will then be offered for secondary trading on the PRO Securities alternative trading system, an SEC-registered subsidiary of tZERO.

Other real estate developments will be tokenized over the course of several years, with the companies saying they would include residential and student accommodation, as well as commercial and hospitality properties. Financial consultant Megalodon has been tapped as an advisor for the project.

tZERO Partners With Media Startup to Tokenize Film Financing

Overstock’s security token subsidiary tZERO has announced a partnership with media startup BLOQ FLIX to tokenize film financing.

The company announced the plans on Thursday, amid a period of reorganization following tZERO’s quarterly loss of $10 million and Overstock CEO David Byrne’s abrupt departure.

Through the partnership, referred to as “Blockbuster meets blockchain” in the press release, the firms will establish a new film financing route for television, internet, and studio projects. Using tZERO’s tokenization protocol, BLOQ FLIX will enable qualified investors to participate in the funding process.

“We are thrilled to partner with the BLOQ FLIX team to bring a secure and innovative investment alternative to film financing. Our continued goal is to tokenize and trade assets that can benefit from blockchain technology, and digitizing film financing fits this model nicely”, said tZERO CEO Saum Noursalehi, in a statement.

According to BLOQ FLIX CEO Brandon Hogan, blockchain will streamline the funding process by providing capital directly to studios and producers.

The brokerage JumpStart Securities will serve as placement agent for these offerings.

Hogan and BLOQ FlIX co-founder Jonathan Helmuth have collectively raised over $100 million in production funds throughout their careers, according to the press release.

In July, tZERO announced it will tokenize and raise up to $40 million in funding for Atari founder Nolan Bushnell’s biopic, with film production and financing company Vision Tree.

Leave a Reply

Your email address will not be published.