LAToken (Liquid Asset Token, LAT) will issue 1 000 000 000 LATokens at a Public Token Sale on August 22. LAToken is a platform that tokenizes assets and makes them tradable. It enables anyone to unlock the value of illiquid assets, including real estate, bank loans, and works of art. An investor needs LATokens to buy asset tokens created on the platform and pay fees for the creation of asset token and transactions.
The platform is based on an existing home equity marketplace,, that has facilitated 12,000 mortgage offers and more than 1,000 deals for 7 banks and 25 investors in the past year. LAToken advisory board is joined by Anish Mohammed, advisor to Hyperloop Transportation Technologies, David Drake, Chairman of LDJ Capital, and Ismail Malik, Executive Chairman of Blockchain Lab.
“My dream is to make NASDAQ on Blockchain with a wider range of tradable assets and a dramatic reduction of listing costs, settlement time, and transaction costs,” says Valentin Preobrazhenskiy, CEO of LAToken, former portfolio manager at Avega Capital, and creator of a back office for hedge funds.
The LAToken platform gives asset owners a new way to gain liquidity by making fractional asset ownership possible and tradable with minimal transaction costs. Asset owners can quickly get cash by issuing LATokens and selling fractional shares via the LAT marketplace, while keeping the actual asset for their use instead of borrowing money and paying interest or renting.
“The secondary and primary markets of fractional ownership of home equity and mortgages are now on the verge of a breakthrough, thanks to cryptocurrency Blockchain smart contracts,” says David Drake, chair of LDJ Real Estate Fund and member of LAToken’s Advisory Board.
Blockchain technology enables selling fractions of assets by issuing tokens backed by assets. Owners of artwork or houses don’t need to wait for a buyer to purchase their house or piece of art. They don’t need a major auction house, which might take a 20% cut, and they don’t need a real estate agent who takes 2-3%. They also don’t need to wait months or even years to sell their asset. The owner of the asset simply completes application forms via the site, signs token sale and asset sale agreements, and creates a token on the platform. After an audit, the token is listed on the LAT marketplace and the sale date is announced. After the sale, the funds are delivered to the asset owner.
By purchasing liquid asset-backed tokens (LABT) at the LAT marketplace, investors get a small piece of an asset. An independent custodian owns a piece of this asset and delivers cash proceeds from the asset sale to token holders. Token investors know that on a certain date in the future, this custodian will sell this share of the asset back to its primary owner. If the owner doesn’t buy the share back, the custodian will sell the entire asset to the market and distribute the proceeds to the principal owner and the token owners.