tZERO, a leading provider of liquidity for digital assets, announced the partnership with a real estate development company ROI Group. Two companies have joined their efforts to issue the digital securities at a total value of up to $50 million in a luxury hotel and residential development located in downtown Dubai.
According to the press release from Mar. 2, this move will help investors access secondary liquidity for traditionally illiquid assets like real estate on the Tezos blockchain.
Real Estate Liquidity Goes on Tezos
ROI Group plans to roll out its digital security offering in smart contracts on the Tezos (XTZ) blockchain. The launch is scheduled for Q3 of 2021, while the building’s development is supposed to be completed in Q4 of 2023.
ROI Group’s first digital securities will be “subject to applicable law and separate documentation” and will be further traded on the tZERO ATS broker-dealer. Thus, they will be “subject to legal and regulatory due diligence” as well, offering investors secondary liquidity.
tZERO CEO Saum Noursalehi commented on the collaboration by saying:
“Our partnership with ROI Group
has the ability to transform the real estate sector and builds upon our momentum in the space. We are excited about our project to digitize and trade up to $50 million in this landmark luxury hotel and residential development.”
ROI Group’s digital security project could be one of many future digital security offerings, says its CEO Martin Scholz.
“We are excited to utilize tZERO’s smart contract technology on the Tezos Blockchain for our first digital securities offering to provide access and liquidity to commercial real estate. We look forward to collaborating with tZERO on future real estate projects,” he claimed.
XTZ on the Verge of Bull Run?
Earlier in 2020, Noursalehi noted that tZERO was eyeing Tezos due to its involvement with digital securities. He particularly emphasized that his platform sees “the biggest opportunity and interest in real estate and pre-IPO companies.”
“Each day, more companies are recognizing the value of asset digitization and we expect interest to continue to accelerate as the ecosystem grows,” he stated.
Meanwhile, Tezos struggles to approach its all-time high (ATH) of $5.56 registered on Feb. 14. At press time, XTZ trades at $3.7 per coin, gaining almost 50% in 6 months, per CoinGecko. Its market capitalization accounts for more than $2 billion.
As of now, XTZ technical indicators are bullish. However, Tezos is yet to break out a long-term descending resistance line. If successful, the rate of increase is likely to greatly accelerate.