Digital asset firm BlockFi has announced an agreement with asset management and tokenization firm Elevated Returns to provide lending facilities against digital assets issued within the Elevated Returns group of companies. Elevated Returns is the manager of Aspen Digital – a corporation that has been formed with the purpose of indirectly owning a portion of the St. Regis Aspen Resort. A security token, Aspen Digital Token, represents equity ownership in the resort.
BlockFi provides lending and borrowing of cryptocurrencies, stablecoins, and US dollars. This partnership is BlockFi’s first lending activity based on tokenized real estate assets.
According to a release, through these lending facilities, token holders will have access to capital while enabling them to hold onto their tokenized investments.
Elevated Returns and BlockFi plan to begin lending to holders of the Aspen Digital Token later this year, the partnership is expected to expand to include other digital assets issued by Elevated Returns’ Asia-focused group regulated platform.
David Olsson, Vice President and Head of Institutional Services Distribution at BlockFi, said that tokenization is a more cost-efficient method for investors to access non-traditional assets – particularly in real estate:
“BlockFi works with institutional and alternative asset managers investing in blockchain-based assets, including Bitcoin. We’re excited to expand our lending activity into assets such as real estate while maintaining our commitment to risk management, liquidity and global client service.”
Stephane De Baets, President of Elevated Returns, said the partnership is key and validates what tokenization has to offer:
“In addition to tokenization offering a price discovery on equity positions, token holders can now, thanks to this partnership, leverage their positions.”
Founded in 2017, BlockFi is a lender to cryptocurrency traders and asset holders. The company recently closed a USD $50 million Series C funding round led by Morgan Creek and oversees over $2 billion in assets under management.
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