tZERO Offering A Slice Of Aspen Through Security Token Deal

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  • tZERO is offering investors a chance to own a piece of Aspen real estate with a security token deal for the St. Regis Aspen resort
  • A fifth of the hotel was tokenized by new owners Elevated Returns
  • The security token offering is the first on the tZERO blockchain

tZERO is offering investors the chance to own a slice of a 5-star resort in Aspen, Colorado through its tokenized securities platform. The tZERO exchange, which launched last year, is offering a 19% share in the St. Regis Aspen resort, an offering that marks the first third-party token on the platform as well as the first to use the tZERO blockchain.

tZERO Sees Ambitions Coming to Fruition

tZERO was built by Overstock and launched last year, in many ways embodying the transition from retailer to blockchain facilitator. The platform has already tokenized luxury apartments in the UK, but the sale of the St. Regis Aspen marks the next evolution in the project’s plans to tokenize a wide variety of assets.

Token buyers will be entitled to dividend payouts in the same manner as regular shareholders, who will all be hoping that the Aspen tourism industry picks up where it left off once fears over coronavirus have subsided.

The First of Many?

The St. Regis Aspen is a luxury resort located to the south of the town in the foothills of the famous mountain range. The luxury 179-room hotel was built in 1992 and was sold to current owners Elevated Returns in 2018. Elevated Returns have tokenized a fifth of the hotel’s value through tZERO as part of a plan to tokenize roughly $1 billion of real estate projects in the future.

Elevated Returns President Stephane De Baets said in a press release that the St Regis deal could pave the way for a boom in the new industry:

We view today’s announcement as an important step towards unlocking liquidity to quality real estate projects, which has the potential to open the door to a $60 trillion commercial real estate market. tZERO has distinguished itself from its peers as the leading liquidity platform for private assets, and we are excited to provide investors with a venue to trade the St. Regis Aspen digital security.

The security token movement has struggled to take off, mainly due to regulatory hurdles, but projects like this will help pave the way for future endeavors.