World Liberty Financial is making strides in the realm of tokenization by unveiling a new real-world asset product tied to the Trump International Hotel & Resort in the Maldives. This initiative represents a significant step towards creating institutional-grade investment opportunities in luxury real estate through blockchain technology.
The newly launched product links securitized loan revenue interests from the resort, which has been developed in collaboration with Securitize and DarGlobal PLC. This offering is designed for accredited and otherwise eligible investors, adhering to existing securities exemptions.
Investors in this tokenized structure will benefit from fixed returns associated with income generated from the resort”s loan payments. However, it is crucial to note that token holders will not possess direct ownership of the property; rather, they will gain economic exposure to the loan”s performance and the related cash flows.
The product has been structured under Regulation D and Regulation S, which means that the tokens will not be registered for public sale in the United States. Distribution of these tokens will rely on approved exemptions applicable to qualified investors. Furthermore, the Trump branding operates under a licensing agreement, with the Trump Organization neither issuing nor promoting these tokens.
World Liberty Financial has crafted this product with a strong focus on compliance and institutional participation. This approach is aimed at aligning with existing securities regulations, ensuring that investor eligibility, disclosure standards, and compliance controls are comparable to those found in traditional private placement markets. Securitize will facilitate the issuance infrastructure, maintain on-chain records, and manage core regulatory workflows.
DarGlobal PLC, recognized for its expertise in luxury real estate, will provide development and asset management support for the resort. The alliance seeks to enhance potential liquidity and price discovery in segments of private real estate that have historically been illiquid.
As the token matures, it is anticipated that it will gain support across various public blockchains, which would expand settlement options for investors. Where allowed by jurisdictional regulations, token holders may eventually use their tokens as collateral on the WLFI Markets platform, introducing an additional potential use case beyond mere passive income.
This product marks the first reported venture into the real-world asset space since World Liberty Financial announced plans to enter this segment in December, with a target date of 2026. The Maldives resort project serves as an early execution milestone in this broader strategy, showcasing the company”s intent to innovate within the realm of institutional real-world assets.
The announcement was made during the World Liberty Forum at Mar-a-Lago, Florida, which brought together senior executives from notable institutions such as Goldman Sachs, Nasdaq, and Franklin Templeton. Discussions at the event revolved around digital assets, stablecoins, artificial intelligence, and shifting monetary policies, reinforcing the institutional focus of this initiative.
In conjunction with this launch, World Liberty Financial also disclosed a partnership with Apex Group to pilot a USD1 stablecoin intended for tokenized fund settlements. This effort aims to integrate blockchain-based payment mechanisms into traditional fund administration processes, potentially mitigating settlement friction and operational risks.
Despite the firm”s native WLFI token experiencing a decline of over 50% since its launch last year, the introduction of this new real-world asset product reflects a commitment to long-term institutional digital finance initiatives over short-term market fluctuations.
Tokenization of real estate has been slower to gain traction compared to other asset classes like treasuries and stablecoins. Currently, only 57 properties, with a total value of $356 million, have been tokenized, highlighting the challenges of scale and liquidity in this domain. In contrast, tokenized securities have witnessed rapid growth, with a reported surge from $32 million to approximately $963 million in a year.
World Liberty Financial is positioning itself to leverage this momentum by introducing the Maldives resort”s loan revenue as a gateway into the broader tokenization market. If successful, this model could lead to further applications across additional properties, thereby enhancing liquidity and accessibility in traditionally opaque real estate markets.
The collaboration with Securitize and DarGlobal PLC, along with adherence to regulatory frameworks, exemplifies how World Liberty Financial aims to bridge the gap between traditional finance, digital assets, and institutional real estate investment.
