According to an announcement disclosed on Monday came to sight that Harbor, having a digital platform that automates the digital processes of alternative investment subscription and investor management as well as secondary transfers, is assisting companies in tokenizing existing securities. Tokens have been created on the ethereum blockchain illustrating the shares of four real estate funds worth $100 million.
Investors, broker-dealers, 17 in numbers, and placement agents work with this funds’ manager. They have been trying to make the best investment experience and to provide liquidity for them. The new process provides investors an infrastructure layer for such investments.
Josh Stein told that Harbor intended to be Salesforce.com of the security token industry who is the CEO of San Francisco-based Harbor.
Considering the talk of investors, who like ICOs issued by projects, the company attempted to build tokens backed by real-world assets. A deal between Harbor and DRW holdings’ real estate wing with a view to simplify the sale of approximately 1,000 tokenized shares in an apartment building got cut off because of the issuance of between the mortgage lender and issuer.
There is a user platform of Harbor where investors, broker-dealers and advisors gather with a view to trading the securities. The funds are locked up here and for that reason investors might not sell their shares for three to five years based on contract.
But if any investor needs to have his funds back before the period gets ended, he must find another investor who will be intended to buy the securities and promise to the remainder of the lockup period. But the process is lengthy as well as expensive. The company of Christensen, CEO of Bellevue, Wshington-based iCap, has previously facilitated $2 million in trades foe these funds. But in the process brought by Harbor coming and exiting fully depends of investors. The 17 broker-dealers have now access to the platform include Bradley Wealth.
By the law of iCap, operates under the rule 144 of the Securities Act of 1933, if you have held a security for one year, it can be freely tradable. After the termination of the period, non-accredited investors can trade the securities. The platform of iCap is not open for the general public. They think they can get their non-accredited clients into this investment that they have. These fund shares now represented by ERC-20 tokens on ethereum. Nobody here is marketing it in fact. The new strategy is connected with Harbor’s wider goal.