With the SEC at the beginning of this month declaring their position on ICOs and that some may be classified as Securities Offering, a company with the name of Harbor has launched a platform for the sale of private securities. The company has announced its first private media sale and will be a dormitory facility at the University of South Carolina.
The announcement came just yesterday, November 27, and the team allowed the investor community to know that they were compliant with existing securities laws. The student housing center at the center of the new stock offering is known as The Hub at Columbia. The sale is in collaboration with Convexity Properties: a DRW company.
The total investment opportunity is valued at $ 20 million with each token that costs $ 21,000. A total of 955 shares / tokens will be on sale.
The CEO of Harbor, Josh Stein, summed up his vision for Harbor in the following statement:
We are excited to work with Convexity Properties to introduce a more accessible and liquid form of commercial real estate investment through the Harbor platform.
Harbor is transforming private investment making it easier and more cost-effective for the more widespread issuers and brokerage brokers, raising capital from a potentially broader and more global pool of investors.
In turn, investors can access previously unattainable opportunities through lower entry points and co-invest with premier companies such as Convexity Properties with the potential for greater liquidity.
The use of Habor of the Ethereum Blockchain
Today's announcement of Habor does not dwell much on what blockchain platform they will use. But looking at the company's whitepaper, we find the following explanation of their R-Token standard:
Harbor is building a decentralized compliance protocol to standardize the way cryptocurrencies are issued and traded on blockchains. The first project is R-Token, an open source standard that defines a mechanism in which cryptocurrencies can be transferred in a consistent manner on blockchains.
Requires the issuance of an ERC-20 authorized token on the Ethereum blockchain which controls a chain regulation service for commercial approval.
The regulatory service can be configured to meet relevant securities regulations, Know Your Customer (KYC) policies, anti-money laundering requirements (AML), tax laws and more.
The R-Token standard allows ERC-20 tokens to become compliant cryptocurrencies that can be exchanged on any compatible ERC-20 platform.
Supported by Andreessen Horowitz, Pantera Capital, Craft Ventures, Vy Capital and Valor Equity Partners, Habor aims to usher in a new wave of tokenised securities backed by real-world resources, as can be seen with the example of student accommodation 39; University of South Carolina.
The asset class that Habor intends to take into consideration is the real estate sector, social capital, investment funds and fine arts. Using the regulated token (R-Token) standard, Habor hopes to provide the first securities platform for licensed issuers and broker-dealers.
What do you think of the aforementioned offer of securities? Let us know in the comments section below
[Image courtesy of The Hub at Columbia and Convexity Properties]
Disclaimer: This article is not intended to give financial advice. Any other opinion present here is purely that of the author and does not represent the opinion of Ethereum World News or one of its other writers. Perform your research before investing in one of the many cryptocurrencies available. Thank you.