San Diego registered broker-dealer real estate investment and merchant bank, Silver Portal Capital LLC, has announced a partnership with New York electronic trading and technology provider, Fundamental Interactions Inc., to launch Silver Portal Markets: a web-accessible marketplace that will provide both real-time secondary trading and direct issuance funding for select real estate securities.
The market will support public and private real estate securities, including Non-Traded REITs, Delaware Statutory Trusts and Limited Partnership interests in strategic Joint Ventures.
The marketplace utilizes Ethereum smart contracts to provide real-time reconciliation and settlement of trades among inter-dealer counterparties, providing analysis of moment-to-moment net settlement exposures on a peer-to-peer basis.
In the case of the primary market, new equity issues are written into smart contracts on a distributed ledger as a basis for shareholder services and tracking beneficial ownership.
Jon K. Haahr, Founder, and Jean-Louis Guinchard, Senior Managing Principal, of Silver Portal Capital, said:
“Silver Portal Markets brings new viability to previously constrained aftermarkets by creating additional liquidity and ease of access for best-in-class real estate sponsors and issuers. We’re very excited to bring this new opportunity to the market.”
The secondary market will reshape the historically dislocated network of real estate sponsors, inter-dealer brokers, and registered investment advisers into a dynamic and competitive trading marketplace.
A simple web interface provides access to a sophisticated multi-dealer electronic trading infrastructure where customer orders are matched on a central limit order book operated by the DBOT ATS, a subsidiary of the Delaware Board of Trade.
Jose A. Guadalupe, DBOT Board Member and representative of S.S. Lootah Group said:
“We are pleased to support the addition of these new products to the market center, especially here in Delaware, which has already legally embraced the blockchain for equities issuance and settlement.”
The automated primary issuance platform within Silver Portal Markets will allow select real estate sponsors and investment banks to directly syndicate equity out to investors, principally through 506(b) and 506(c) offerings. This will enable sponsors to raise capital more efficiently and cost-effectively, and ultimately create liquidity for new issuers on the platform.
James Slazas, Director of ConsenSys Capital, added:
“ConsenSys is excited to support the innovative marketplace in its use of smart contracts for trusted settlement and greater transparency.”
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