Token IQ Breathes Oxygen Into Fledgling Asset Backed Securities Market
Token IQ, one of the front-runners in the increasingly competitive race to tokenize securities, is teaming up with Phoenix, Arizona-based Oxygen Hospitality. For the first time ever, customers will be able to use Blockchain protocol to buy real estate debt such as bonds and short-term loan notes secured on Oxygen’s portfolio of retail outlets and hotel chains.
In particular, the pair are seeing strong demand for short-term notes. With Token IQ’s proprietary technology, customers can use the blockchain’s security and Know Your Customer (KYC) compliance alongside traditional paper notes.
“The blockchain, and more precisely smart tokens, are the new kids on the block,” Token IQ’s President and Co-founder Aleksander Dyo said in a statement. “Oxygen is setting a path of tech innovation in the hospitality industry that will help to redefine the future of guest experience, hotel management, and ownership structures.”
While the agreement with Oxygen Hospitality presents a major landmark within the hospitality industry, Token IQ can be applied to, and adopted, by many industries.
In particular, in the next few years analysts say such technologies could have far-reaching effects for what is a growing but still fragmented and increasingly do-it-yourself market when it comes to asset backed securitization. A UBS fund manager recently told industry trade journal Global Capital that his team preferred to source their own deals than to “eat someone else’s cooking”.
Increasingly, firms and investors have been making patchwork quilt deals, which could be injected with a new lease of life thanks to blockchain solutions such as Token IQ’s, which is currently in a pending status for patenting. Many of the industry’s more unique deals have seen an uptick in demand lately. For example, $150 billion a year Tafigura recently increased the size of the Geneva trading firm’s fifth ABS issuance on the back of stronger demand from investors.
“Businesses looking for efficiencies and differentiation continually seek adoption of new and innovative ways to enhance the client experience,” said Peter Anadranistakis, President and Co-founder of Oxygen Hospitality. “[Token IQ’s tech] will create a bridge and merge the old system with the new era of hybrid asset ownership models to unlock a broader pool of options for growing early-stage investments by creating alternative funding mechanisms.”