Vertalo announced a major partnership with Inveniam Capital Partners and Securrency. The $260M deal is the first-of-its-kind and will provide capital for middle market real estate and infrastructure projects from distribution channels utilized for the first time. This hybrid distribution allows both fiat and cryptocurrency investors to fund institutional-quality tokenized assets.
This deal will enable Inveniam to build the next evolution in capital markets for small-to-medium-sized enterprises. The total value of the four tokenized assets is just over $260 million, which is the largest asset tokenization yet reported and performed.
The private offering will include four separate transactions including a commercial office building in Downtown Miami, a North Dakota water pipeline project, a student-housing portfolio, and a Florida multi-family housing project. This type of financial transaction in both the tokenized securities space and cryptocurrency space validates the emerging trend of bridging real-world projects to the digital world.
Multiple properties in Miami will be tokenized, including a WeWork-occupied building. “Inveniam Capital is demonstrating that asset tokenization is about creating liquidity premiums and Vertalo is excited to help bring these offerings to a market hungry for well-structured deals that happen to be blockchain-enabled.” Vertalo CEO, Dave Hendricks
As part of the deal:
- Vertalo will provide their investor on-boarding, crypto cap table platform, and integrations with AML/KYC platforms to support compliant offerings, including investor registration, eligibility, and ongoing communications.
- Securrency will provide tokenization services as well as smart contract design and trade functionality.
- Grapefruit Trading is providing trading support for the offerings in converting crypto-based investments to fiat.
Vertalo CEO, Dave Hendricks, says “Vertalo is excited to assist with the execution of Inveniam Capital’s historic tokenized offering. Pat O’Meara and the team at Inveniam Capital are applying innovative and compliant blockchain capital formation approaches to a business we can all understand: Infrastructure and Real Estate. By leveraging Vertalo’s compliance and cap table technologies, Inveniam Capital can reduce the cost and complexity of their offering, improving investor outcomes and the overall investment experience. Vertalo’s work with Inveniam and Securrency demonstrates the ‘team sport’ approach that is critical to successful issuance of digital assets.”
“By working closely with Vertalo and Securrency, we are able to expand our capabilities and bring additional functionality to our data-rich offerings, allowing us to serve the market more quickly and cost-effectively. As a result of this collaboration we are paving the way for future large issuances as we execute these trades and perfect this new model or distribution to traditional and crypto investors.” Inveniam Capital Founder and CEO, Pat O’Meara
Securrency’s CEO and Founder, Dan Doney, believes the Inveniam offerings point to the future of finance: tokenized institutional grade debt and equity instruments that can be traded efficiently in secondary markets. “The Inveniam offerings will mark the full maturation of blockchain industry by bringing proven income bearing instruments (not speculative assets) to the market. These offerings set precedent for what will surely be a multi-trillion dollar market. By teaming with Vertalo, the offerings bring best in class investor onboarding, qualification, and cap table management. As a team, our emphasis on compliance and security will pave the way for institutional participation.”
As noted by Grapefruit Trading CEO, Mike Komaransky, the block chain and tokenization with the interaction with crypto opens a bridge between digital and traditional assets. “However, regardless of the additional functionalities provided by this digital format, the fundamentals of the trade and the underlying assets remain the same as any standard real asset transaction or whole loan sale, but these assets will sit in the crypto wallet of the investor.”