A real estate firm in the Middle East is taking a unique turn by funding a hotel construction through money received from selling cryptocurrencies. Saudi luxury real estate developer Dar Global is planning to move to the blockchain realm to help finance its new Trump-branded hotel, Trump International Hotel, in the Maldives.
In simpler terms, the real estate company launched what it claims is the world’s first tokenized hotel development.
Instead of raising money through conventional methods like banks or institutional investors, Dar Global hopes that selling crypto tokens will provide a significant portion of the money required for the development. This move is quite an innovation for both the real estate and crypto industries.
In an interview, Dar Global CEO Ziad El Chaar emphasized that the company plans to use money received through crypto sales to fund up to 70% of its Trump-branded hotel.
“We would like to tokenize 70% of that development fund to as many token holders as possible,” said the CEO.
Digital tokens to fund construction
The real estate developer and The Trump Organization are jointly tokenizing the development of the luxury hotel on blockchain. They create blockchain-based tokens representing a share in hotel development. Investors, especially retail investors in the US, can buy these tokens. When they buy the tokens, Dar Global gets real money to fund the construction.
For the real estate developer, money earned through tokenization lowers financial risk.
Ziad El Chaar also quoted: “Tokenizing the development of Trump International Hotel Maldives marks a global first that blends luxury, innovation, and technology in a way that will transform how the world invests in hospitality.”
Real-world asset tokenization, including real estate properties, is already happening; however, raising funds to develop a project through tokenization is a unique approach in the blockchain industry.
