Real Estate Tokenization
Blockimmo, a blockchain based company in Zug has started its own platform for real estate tokenization. The company will also be providing asset tokenization and investors in the company will all receive shares of this digital token just like regular company shares.
The company did its first round of tokenized asset distribution last year with a total 20 percent in shares.
These security tokens are called IMMO and will be synchronised with its global certificate and will hold all capital in the form of participation certificates.
The certificates will be held securely by the Bank Frick, along with the terms of the token and prospectus.
According to reports coming from the Director of Funds and product at the Bank Frick, Raphael Haldner:
“As specialists in the creation of tailor made fund and capital market products, we have been working for a long time to integrate the potential of the blockchain into our solutions in the best possible way. In particular, we allocate great importance to the tokenisation of financial instruments in the future and are convinced that a significant increase in efficiency is possible compared to traditional securitisation, consequently, we are very pleased to be able to support blockimmo in this innovation.”
Trading IMMO tokens
Private equities along with start-up shares are usually very highly illiquid asset investments. Situations like these caused the well know transport company Uber to take around ten years before the company was able to get its initial investment tradable on any exchange.
Contrary to the IMMO tokens, it was tradable within 24 hours after the distribution to shareholders. The tokens are now currently traded on the STX.SWISS which is a fully decentralised exchange for digital assets.
The legal participation is represented on a smart contract put on the digital register of Ethereum‘s local public blockchain with constant updates after transfers.
According to Don Bastiaan, the founder and Managing Director of Blockimmo :
“Our technology can be applied to any asset class, as we demonstrate once more by tokenising our own company shares. The fact that our start-up shares are instantly tradable at a decentralised secondary market and there is liquidity shows that the tremendous potential of the underlying technology is coming to life, an executed use- case of decentralised finance at its finest.”
This company has brought solutions that have aroused the interest of various parties in the real estate market with private equity and art markets also receiving solutions in the market.
However, this has pushed forward the compliances like KYC/AML that may slow the growth and potential of this company in the market.
To try and tackle this the company has decided to use BlockID for these processes and plans on announcing some strategic partnerships in the future.