Trump-Backed World Liberty Plots ‘Exit Mechanism’ for Maldives Hotel Tokenization Project

Holding a digital asset for four years can feel like an eternity in the crypto sphere. How does a Trump-backed DeFi project convince investors to park their capital behind a luxury Maldivian resort that won’t open until 2030?

The answer, according to World Liberty Financial (WLFI) and Saudi real estate developer DarGlobal, is a specialized “exit mechanism” designed to bridge the gap between the attention span of meme coins and the slow-burn reality of international real estate.

The mechanism will be detailed in an upcoming prospectus for the Trump-backed crypto project, which includes the construction of 100 beach and overwater villas in the archipelago, DarGlobal CEO Ziad El Chaar said. Declutterrecognizing that delays may occur.

“We’ve created a structure where you can get out if you’re not happy with the direction this is going,” he said. “And at the same time […] You don’t stand there and earn nothing.”

By tokenizing at the development level – rather than selling parts of a completed building – WLFI says it unlocks the high-margin ‘development returns’ for commercial real estate projects that are typically gobbled up by big banks.

The tokens are expected to provide investors with steady returns and income from loans originating from the $300 million property, according to a press release. And in the future, the tokens could provide income payments or certain profits from the sale of the property.

El Chaar said DarGlobal is taking additional steps to make clear its role in the game. That includes retaining a minimum 30% equity stake in the project, rather than the 10% developers typically retain in similar circumstances, he said.

“All interests aligned to complete that project and put that resort into operation,” he said, noting that the villa-based design of the ultra-luxury project is deliberately “non-complicated.”

The tokens will be issued in partnership with Securitize, using infrastructure designed by the BlackRock-based tokenization specialist. In the press release, CEO Carlos Domingo noted that “real estate is one of the most difficult asset classes to effectively tokenize.”

In December, Domingo said Declutter that tokenization could make it easier for someone to invest in foreign properties, but their possibility to leave positions has been historically overlooked.

“Providing liquidity to the asset class is just as important as providing accessibility,” Domingo said. “And there was a perception that tokenization would make those illiquid assets liquid, and that didn’t happen, because an illiquid asset is illiquid whether you tokenize it or not.”

While numerous companies have dabbled in tokenized real estate before, the project will “broaden the spectrum of choice” for crypto investors who want assets under different time horizons, Eric Trump, co-founder of World Liberty Financial, told me. Declutter.

“If you want to get in and out of a project five minutes later, buy some meme coins,” he said. “It gives the masses options that they may never have had before.”

Still, the company’s offering is limited to accredited investors, meaning most of the project’s returns won’t be accessible to the average person. Trump said he hopes this group will broaden over time and move further away from deals dominated by big banks.

El Chaar said investors will eventually be able to switch their exposure to equities in the Maldivian resort if they wish. He added that the tokens also offer “lifestyle benefits,” which will become available to eligible investors within the next month.