A new milestone was achieved today when three firms were able finally complete the first ever real estate transaction done through block chain. The transaction was worth 3 million Swiss Francs which involved an 18 door apartment and a restaurant. This could be the first step to creating an avenue of tokenization of properties. Blockimmo is looking at selling the property through a crowd sale.
The three main proponents of this transaction were Blockimmo, Elea Labs Ltd and Swiss Crypto Tokens Ltd. Swiss Crypto Tokens Limited is a Digital Assets Service firm and Elea Labs Ltd is a property tech company. Blockimmo, who made the announcement, is a property transaction platform.
To avoid fluctuation, it was supported by the stable coin CryptoFranc through Swiss Crypto Tokens Ltd. and was tokenized in the Ethereum Blockchain. To create the digital real estate data, Elea labs provided the digital identity for the property.
Digital Identity of Real Estate
The digital identity could lead to innovation when it comes to digital transparency in real estate transaction. Elea Labs CEO Martin Schnider adds, “In the future, the Property DNA will enable a transparent digital due diligence and will also simplify, accelerate and reduce the cost of processes across the entire real estate industry.”
Swiss and America Embracing Block Chain
Not surprising, Switzerland is a key reason to this revolutionary transaction. It has always been forward thinking when it comes to block chain technology. This was further reinforced by their positive treatment of technology. According to Lucerne University of Applied Science, the Fintech Market of Switzerland grew 62% in 2018.
In the United States, Real Blocks has the same goal. Real Blocks developed a platform that allowed the tokenization of privatized funds. Through this platform, real estate investors are able buy and sell on both domestic and international markets.