Inveniam has been live on Tezos for months at this point and is growing fast. Inveniam currently delivers monthly pricing of assets in cooperation with partners like Cushman & Wakefield (for real estate pricing) and Deloitte (for audits).
Inveniam has been live on Tezos for months at this point and is growing fast. Patrick O’ Meara, Chairman & Chief Executive Officer of Inveniam has reported that Inveniam’s transaction volume has already been responsible for 6% of the transaction volume on Tezos at some point.
It’s difficult and expensive to value traditionally low volume assets. Think of assets like commercial real estate, private equity and municipal bonds.
These assets don’t change owners frequently which means there is little price info to go by if you want to know the current value.
Inveniam, a New York City-based software-as-a-service company, has created a New Asset Value (NAV) pricing solution to improve the liquidity of assets. This solution is currently live on Tezos mainnet.
Illiquid assets are assets that don’t change owner frequently which results in a low trading volume market. The most obvious example of an illiquid asset that most people know is real estate.
This is not an asset that is being bought and sold within a short period of time.
To keep track of the value of these assets, the value does need to be continuously assessed. In a liquid market, current prices are widely available, which makes value assessments less complex.
To adequately determine the current value of an illiquid asset, a broader number of several types of data needs to be supplied, authenticated, evaluated and stored in a secure and reliable manner.
To value real estate, you can think of data like maintenance statistics, tenant credit scores, surrounding property values and all the information relevant for pricing the performance and overall value of specific properties.
Current methods to collect, store and assess this data are outdated, costly and time-consuming. Inveniam has created a method where this data can be securely audited, stored and time-stamped in such a way that:
– On administrative and legal levels, process-costs are dramatically reduced.
– Assets like real estate and mortgages can be moved from Level III (illiquid assets) to Level II (marketable alternative).
– A client can reduce the time needed to assess real estate performance and data from 120 days to 5 days.
– For insurance companies, assets may be upgraded from Schedule BA to Schedule A – reducing the obligation for 20% of the purchase price in equity to an obligated 10%, meaning large institutions will be able to free up millions of dollars to be invested elsewhere.
On blockchain, certain processes can be automated in a trustless and immutable manner. As you can see in the examples above, moving these processes to blockchain reduces costs and speeds these processes up.
Data is the backbone of the NAV pricing solution that can be updated periodically as often as clients choose. Inveniam currently delivers monthly pricing of assets in cooperation with partners like Cushman & Wakefield (for real estate pricing) and Deloitte (for audits).
The data itself is not on-chain. Instead, a data validator like Deloitte or Cushman & Wakefield, broadcasts a hash of the data bundle on the blockchain, which creates an immutable timestamped datapoint and proves authenticity of data.
That data is accessible for holders of specific asset tokens only, where the proof of ownership allows access. The authentication hash, stored on-chain, authenticates the time-stamped data to which the user now has access. All in a trustless and immutable environment due to decentralized public blockchain use.
For now, Bloomberg and CoStar are the centralized data repositories to which people typically subscribe. But Inveniam predicts this will soon change through their NAV blockchain-based pricing solution.
The future is a distributed data ecosystem, with millions of data creators (who currently report to centralized data repositories) and hundreds of trusted data validators like Deloitte, Cushman & Wakefield, JLL and CBRE.
“We get them better accounting treatment, which gets them capital relief, which frees up capital reserves. They can then change how they do their capital risk and value risk accounting,
We believe that price discovery will be the killer app for blockchain. It’s finally a reason why an institutional owner will get over the pain and suffering of actually dealing with blockchain.”
– Patrick O’ Meara, Chairman & Chief Executive Officer Inveniam
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