Liquefy, a fintech platform based in Hong Kong, has joined the Amazon Web Services (AWS) Partner Network (APN) after building its proprietary tokenisation solution on top of the vendor’s cloud platform.
Operating as technology partner, the platform leverages blockchain capabilities to allow customers to tokenise assets and issue digital securities with a direct link to the underlying value drivers secured by a digital Register of Members (ROM) recorded on blockchain.
Since launching in 2018, the start-up has established use cases in real estate tokenisation through local property developer Stan Group alongside running projects to tokenise assets in film production and sports.
“We deeply value our relationship with AWS as a registered APN Technology Partner, and are excited to develop new collaborations in the area of real asset tokenisation,” said Adrian Lai, CEO of Liquefy.
Liquefy goes to market as a fintech platform that enables the issuance of tokenised securities backed by real assets to bring in accessible investment. The platform is designed to “democratise investment", added Lai, first for institutional and professional investors and eventually, when adequate regulatory frameworks are in place, for retail investors.
According to Lai, tokenisation will bring this change through "reducing the operational cost of fractionalised ownership", in addition to "lowering the entry barriers to investment, and bringing portfolio rebalancing flexibility to previously illiquid assets".
“Tokenisation really took off over the last year or so, and it is encouraging to see a steady increase in market interest in Asia,” he added. “Liquefy has a lot of ideas to bring to this space, and we are excited to work with AWS to make these ideas happen.”
Lai said AWS offers services complementary to the technical process of tokenisation, such as the Amazon Virtual Private Cloud (Amazon VPC) which allows the defining of a virtual network to launch AWS cloud resources with control of the virtual networking environment through Amazon VPC, and the auto-scaling feature to scale Amazon EC2 capacity.
"The Liquefy solution built on AWS enables the digital ROM of real assets, such as property, to be secured on blockchain, with every transaction hashed and recorded immutably on the blockchain system," a Liquefy statement added.
Liquefy has worked with Stan Group in Hong Kong to tokenise a real estate asset owned by the group for an employee incentive program. Real estate tokens were issued to reward high-performing staff with the chance to generate wealth from the capital appreciation of the property.
Lai said the first phase of the project was launched during the fourth quarter of 2019, with the long-term goal of the initiative designed to enable secondary trading of the real estate tokens.