The best part of equity tokenization of real estate assets (or any asset for that matter) is that it provides a path for enhanced liquidity for investors while increasing the efficiency and transparency of trading on a secondary market. This liquidity factor previously did not exist before blockchain technology. Listen to this podcast where Kris Ferranti – a partner with the global law firm Shearman and Sterling – explains how blockchain unlocks the liquidity of real estate investments and how he is spearheading his firm’s real estate blockchain and tokenization efforts with their “Fintech Foundry Initiative”.
Real estate used to be all about the 3 “L”s: location, location, location. But now, the “L” has since changed! As Mr. Ferranti mentions in his article “CRE Equity Tokenization: A Path for Enhanced Liquidity” and on the podcast, the importance of liquidity cannot be stressed enough as one of the major benefits of blockchain. But besides the obvious benefits of liquidity, the broader distribution factor of blockchain means investors can sell their share in digital tokens to a wider market that is poised for exponential growth through interoperability — a potentially game-changing feature of blockchain technology! Plus when you can slash transaction costs and eliminate middlemen while greatly lessening the possibility of fraud (as blockchain does to potentially disrupt every industry), you have a technology everyone can get behind.
We’re already seeing sponsors and syndicators of commercial real estate starting to look into tokenizing their deals. While tokenization is still in its infancy, digital token investors will likely become a permanent fixture in the capitalization structures for commercial real estate projects, especially as investors become more knowledgeable about its benefits and as winners in the space emerge and the regulatory framework matures. And from listening to Kris Ferranti and the knowledge he imparts on this podcast, Shearman and Sterling is certainly well positioned to be at the forefront of this market as one of the oldest and most respected law firms in the world. Get more information on Kris and Shearman at their website at www.Shearman.com
ABOUT OUR GUEST: Kris Ferranti
Kris Ferranti is a partner in the Real Estate practice at the global law firm Shearman and Sterling. He has extensive experience representing clients in complex commercial real estate transactions, including in the areas of acquisitions, dispositions, joint ventures, development projects, foreign investment, financings and ground and space leasing.
Kris regularly represents financial institution, sovereign wealth fund, investment fund and individual and institutional investor and developer clients including Olayan America, Credit Suisse, Shorenstein Properties and Metropolitan Life Insurance Company.
Kris has written publications in Real Estate Finance & Investment and Law360 and has been involved in a number of speaking engagements at seminars and conferences on various real estate subjects.
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