Undoubtedly, tokenized assets have come a long way. However, if you think that the race is over, it is probably not! The current competition is stiff and is all about how one introduces the regulated products in the market first and then who can make most users to adopt the product.
A large number of projects have proposed to tokenize real estate assets in the past, however, Blockimmo is probably the first startup to do it following the regulations in two jurisdictions.
The platform was launched recently and tested two properties. The startup plans to have the real test at the beginning of 2019.
How does it Work?
The platform involves a simple concept. A rest estate seller first lists the property on the platform. Corresponding tokens are then issued which reflect the shares of the property. Investors are then open to investing as per their convenience. They can further, also track the crowd sale progress.
The sellers can impose a range of limits and terms on the sale. After the sale process is complete, each investor receives representative tokens in their wallet.
To play the cards right and to ensure that the platform is fully regulated, Blockimmo plans to roll off its operations only to places which provide full regulation, and so the startup has planned to start in Switzerland and Lichtenstein as of now.
However, they soon plan to expand to other Europe countries as the platform grows.
The properties that are sold on the platform are held by a Lichtenstein firm which makes them secure in a legal sense.
Bastiaan Don, the founder of Blockimmo, believes that:
“The properties we tokenize are already designated with the precise E-GRID number directly in the blockchain. This is already a known quantity in Switzerland, and they are already entered as such in their own, centralized land register. Synchronizing the systems would be the first step towards a land register on the Blockchain.”
Blockimmo achieved a big milestone this week. The financial regulatory body of Swiss, FINMA, approved the business model of Blockimmo along with their security token offering. This means that the startup is legally free to pursue their business, and they don’t have to worry about getting entangled in the legal proceedings and the like.
To be on a safer side, the project has collaborated with a legal firm called MMME which would help them handle the legal issues that may arise during the process. Also, the project is backed by a family-run bank, Bank Frick. The director of Fund and Products, of the Bank Frick, Raphael Haldner said:
“The implementation of projects like blockimmo demonstrates the expertise of Bank Frick in the field of digital business models and products, as well our innovative drive.”
That said, we are really excited for the project, and lets’ see how the things go. The real listings are expected to happen in January 2019, and we are eagerly waiting!