Liquefy pens consortium paper on real estate tokenisation with Sidley Austin, KPMG, and Colliers
The rapid development of blockchain technologies is spawning a wave of financial innovations. One of the hottest areas is tokenisation, the process in which the rights or shares of a non-digital real-world asset are converted into digital tokens for trading using blockchain technology securely and transparently.
To examine the prospects of tokenisation in the real estate sector in Hong Kong and Singapore, Liquefy, a Cyberport FinTech and blockchain start-up that specialises in tokenised securities, recently published a consortium paper on real estate tokenisation with Sidley Austin, KPMG, and Colliers International, three world-leading professional services firms in law, accounting, and real estate services and investment, respectively.
The paper outlines the technical elements, the regulatory landscapes, the implications on tax and governance, as well as real estate and business valuation. It charts the lifecycle of a tokenised securities, supported by case studies, offering insights on market opportunities for Hong Kong.
Philip Pang, Liquefy’s Chief Commercial Officer said, “Increased institutional adoption of real estate tokenization will unlock innumerable opportunities for the industry, including real estate tokenization for employee incentive programmes, tokenised lease-to-own property programmes, and co-working space arrangements. We are positive that the benefits of fractionalization, operational efficiency, reduced settlement time, data transparency, flexibility and liquidity will drive transformation of the real estate industry in Hong Kong.” Liquefy is currently the only registered Technology Partner for tokenization on Amazon Web Services (AWS) Partner Network, where it builds its proprietary solution for customers to tokenise their assets and issue digital securities with a direct link to the underlying value drivers secured by a digital register of members recorded on blockchain.
The company is actively lining up webinar series with consortium partners and industry associations to engage more education around blockchain and tokenisation to raise awareness and understanding of the benefits.