Fluidity: The Tokenization of Real Estate Assets
In December 2018, the blockchain startup Fluidity was about to participate in its first tokenization deal, which would create digital access to property rights in a 12-unit Manhattan condominium complex. The deal was proof-of-concept for Fluidity, which hoped to develop a business digitizing securities issuance for other real estate assets on the basis of its technical facility with blockchain technology, and in conjunction with its broker-dealer partner, Propellr. A successful transaction would only prompt larger and more urgent strategic questions, however. Among them was the appropriate revenue model for Fluidity-whether to grow by providing its technical services to broker-dealers, by going into tokenized securities issuance, or by harnessing its trading technology to facilitate a secondary market in tokenized securities.