Asset tokenization solution provider Harbor Platform Inc. announced Tuesday the launch of its service that lets institutional businesses issue and manage their own securities based on real-world assets using distributed ledger blockchain technology.

The process, called “tokenization” uses the blockchain to digitally track transfers, records and ownership of private securities – such as shares in a company or property.

This allows businesses to create their own securities-based equity in property and Harbor’s solution also provides ease-of-use, higher liquidity for investments in assets and increased assurance in regulatory compliance.

“Harbor is transforming private investments by making it easier and more cost-effective for issuers and broker-dealers to syndicate more widely, raising capital from a potentially broader and more global investor pool,” said Josh Stein, chief executive of Harbor. “In turn, investors can access opportunities previously out of reach through lower entry points, and co-invest alongside premier companies like Convexity Properties with the potential for enhanced liquidity.”

The first offering on the Harbor platform is a tokenized real estate offering from Convexity Properties – a subsidiary of DRW Holdings LLC that represents a $20 million in private equity in The Hub at Columbia.

The Hub is a premier off-campus, student housing high-rise service the University of South Carolina. Equity in the property is divided into 955 shares (as tokens) priced at $21,000 each.

“The launch of Harbor and the Hub at Columbia REIT marks the beginning of an exciting new model for real estate private equity, where investors can access institutional-grade properties in a more accessible and liquid form,” said Michael Solimene, founder and chief executive of Trophy, a lead institutional investor in The Hub property.

Harbor’s platform provides an end-to-end service that can be used by any business with property to support the tokenization of any real-world asset. It is designed to provide an easy, secure and compliant solution for issuers and investors. The system includes investor onboarding – such as Know Your Customer and anti-money laundering paperwork, accreditation and tax forms – signing of documents, tracking of funding and many other business functions.

The company also recently announced a partnership with BitGo Inc., a blockchain security provider, that will make available secure wallets for investors to hold tokens and also provide for the compliance needs of issuers and investors. BitGo will handle the custody of cryptocurrency funds during fundraising processes should issuers accept bitcoin or other currencies.

Interest in tokenizing securities has become an ongoing trend this year. This includes the sale of equity in the St. Regis Aspen Resort in Colorado by crowdfunding site Indigogo Inc. for the Aspen Digital Inc. company holding the sale in August. And Monday’s announcement of Securitize Inc.’s $12.75 million Series A funding round, a company building a platform to provide regulatory compliance for securities tokenization.

As an investor, Solimene sees this trend as a huge opportunity for the industry in general by adding a diverse set of properties that weren’t on the market before. A market that Solimene suggests can only expand by making the ability to create tokenized assets itself more accessible.

“Acquiring the highest quality tokenized real estate, Trophy is able to provide our investors with unique opportunities,” said Solimene. “As more quality single-asset real estate security tokens become available, [we] will be able to execute on investment strategies not possible before.”

The Harbor platform is now generally available to businesses seeking to tokenize real-world assets and attract investors. Businesses can sign up on the website and institutional investors can peruse investment opportunities as well.

Photo: Convexity Properties