A Chicago trader’s plan to use digital tokens to sell equity in a South Carolina student housing complex has fallen apart.
Don Wilson’s Convexity Properties planned to set up a REIT to sell ownership stakes in the Hub at Columbia building in the form of tokens issued by Convexity and tracked on a blockchain ledger. But the deal fell apart when Convexity couldn’t come to an agreement with US Bank, the mortgage lender for the property near the University of South Carolina, according to Crain’s.
Convexity had been working with San Francisco-based Harbor Platform to design the digital tokens to be used in the transaction, and a Harbor spokesman told Crain’s despite the failure of the Hub at Columbia endeavor the company still believes the token structure can become more common in real estate financing.
Spokespeople for Convexity and US Bank declined comment. [Crain’s] — John O’Brien