Switzerland has officially become the first country in the world to submit a real estate deal on Blockchain. A collaboration between 3 companies – Blockimmo (a blockchain property transaction platform), Elea Labs Ltd (a proptech company) and Swiss Crypto Tokens Ltd (a digital assets service firm) made this possible. The development was announced by Blockimmo in a blog post on March 1.
The transaction is valued at 3 million CHF (Swiss Francs) or approximately USD $2.98 million. The property consists of 18 apartments and a restaurant. The property was tokenized leading to it’s real asset value being represented digitally on the Etherium (ETH) blockchain in the form of tokens. The transaction was supported by Swiss Crypto Tokens stablecoin, CryptoFranc (XCHF), pegged to the Swiss Franc, to avoid price fluctuations.
To ensure that each building has its own identity, Elea Labs provided the real estate data of the property or “Property DNA”. Martin Schnider, CEO, Elea Labs, stated :
“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”
According to the post, it was the first step towards tokenization of future properties that Blockimmo purpotedly plans to sell through a public crowdsale. Property tokens are also expected to be listed on a regulated exchange in Q2 2019.
Due to its positive treatment of blockchain and other related crypto-technologies, Switzerland has developed a reputation worldwide as a Blockchain and crypto-friendly country. Swiss fintech market has grown by 62 percent in 2018, revealed a study by the Lucerne University of Applied Sciences.
In January, a seed funding round was successfully closed by a Blockchain based American real estate platform, RealBlocks. RealBlocks has designed a decentralized platform that tokenizes shares of private equity funds and also allows real estate investors to sell shares at both international and domestic markets.
How do you think will Blockchain help the real estate market ? Have your say in the comments section below !