tZERO, an alternative trading system for security tokens, has announced a partnership with real estate crowdfunding company, NYCE Group, to tokenize $18 million worth of shares of the firm.
NYCE’s stock will be tZERO’s first new listing since the launch of the ASPN pair in August 2020, which represents partial ownership in a Colorado ski resort.
Announced on June 30, tZERO will support secondary trading for NYCE tokenized common shares after the real estate firm has completed its upcoming Regulation A+ offering, subject to regulatory approval.
Shares in NYCE will be tokenized using tZERO’s proprietary smart contract technology. Philip Michael, CEO and co-founder of NYCE, said:
“Through our partnership with tZERO, a leader in liquidity for digital securities, we are excited to offer investors liquidity optionality.”
The real estate firm was founded by Michael and FC Barcelona soccer player Martin Braithwaite, with the media describing the platform as the “robinhood of real estate investing”.
The NYCE app allows retail investors to own fractional shares in properties from its $260 million portfolio, which describes its mission to create 100,000 high-net-worth Millennial stakeholders of color by 2030.
NYCE finalized its $1 million Regulation Crowdfunding (Reg CF) offering in October 2020, setting a record for the fastest Reg CF offering to raise seven figures. The company formally launched its app in March.
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Among the tokens on the exchange, the volume for the ASPN token has consistently lagged behind tZERO’s native token TZROP and Overstock’s digital security OSTKO since the launch of Resort’s token.
The security token sector has been on a wild ride in recent years, with monthly volume growing from around 110x to less than $200,000 in January 2020 to nearly $22 million during August.
However, monthly trading activity is down more than 75%, with less than $5 million in May.
According to the latest report from the Security Token Group, TZROP was the most traded security token for the month of May with approximately $2.7 million in trades. According to CoinGecko, TZROP’s market cap currently stands at approximately $140 million, which would rank it as the 229th largest crypto asset by capitalization.