Worlds First Regulated Blockchain Real Estate Crowdsale Platform Launched in Switzerland

Worlds First Regulated Blockchain Real Estate Crowdsale Platform Launched in Switzerland

TweetShare
blockimmo

Tokenized assets are here to stay. The current race is about who can get regulated products to the market first and then who can successfully gain user adoption. While several projects have purported to tokenize real estate assets, blockimmo is the first to do it within the bounds of existing regulations in two jurisdictions.

The blockimmo platform launched recently with two test properties, but they intend to have actual real estate listed in the beginning of 2019.

The way blockimmo works is a real estate seller lists the property on the platform, along with an issuance of tokens which will represent shares of the property. Investors are then able to invest however much they like and watch the crowdsale progress. Various terms and limits can be placed on the sale. Once the sale is complete, each person who invested receives representative tokens in their wallet, tokens which are associated with a real-world holding by an investment firm in Lichtenstein.

Weve heard this before. Several projects are working on similar goals, with regulations and government approval being the primary stumbling blocks. One that comes to mind is LA Token. TrustToken aims to do similar things in the future, as well.

Not Available in the US

The question of enforceability arises when there can be literally dozens of owners of a single property and the tokens can be swapped between wallets at will. To deal with this, blockimmo is limiting its operations to places where it is sure it can be fully regulated: Switzerland and Lichtenstein. They intend to expand to other parts of Europe as properties are successfully listed and the platform grows.

The properties that are sold on the platform, in a legal sense, are held by a Lichenstein firm, each with its own sub-fund. This is how the properties are secured in an IRL sense.

Switzerland is a great place to start a project like blockimmo because of the organization of its existing land registry. Founder Bastiaan Don said of this:

The big news last week for blockimmo was that FINMA, the Swiss financial regulatory body, had approved both their business model and their security token offering. This means theyre totally free to pursue their goals, and dont have to worry about later running into problems with regulators. Swiss laws still apply to properties that are listed and exist within Switzerland, and there are various restrictions on foreigners investing in Swiss real estate.

FINMA announced this week that blockchain companies would be able to successfully operate in Switzerland with only minimal changes to its regulations.

The project has brought in a legal firm called MME to help it with legal issues that may arise, and also has the backing of family-run bank, Bank Frick, whose Director of Funds & Products, Raphael Haldner, said of the project:

Two example properties are live at blockimmo.ch so the public can see how the platform is intended to work. Real listings are expected to be happening as early as next month.

Featured image from Shutterstock.


20.12.2018 / 01:25 33
$30 Million New York Condo Tokenized on Ethereum Blockchain $30 Million New York Condo Tokenized on
The future of real estate and the mortgage business are set to be revolutionized by tokenized properties. Now Everyone Gets a Slice A $30 million
Japanese Company Trials BTC and Smart Contracts in Real Estate Transactions Japanese Company Trials BTC and Smart
A Tokyo Stock Exchange-listed company has built a cryptocurrency settlement platform for real estate transactions. The firm has tested the platform
VinEstate  a Promising Real Estate Platform Applied Blockchain VinEstate a Promising Real Estate
VinEstate, a decentralized blockchain real estate platform is going to start its crowd-sale on Jun 15, 2018. The target object is almost focused on
AlphaPoint Launches Framework for Real Estate Blockchain Tokens AlphaPoint Launches Framework for Real
Crypto services firm AlphaPoint unveiled a new framework Monday aimed at supporting the launch of blockchain tokens backed by regulated assets.
Alt.Estate Set to Disrupt and Revolutionize the Real Estate Industry Alt.Estate Set to Disrupt and
The real estate industry is estimated to be worth $217 trillion, making it one of the most lucrative sectors for investment. However, in spite of the
Vermonts Pilot Program Completes First US All-Blockchain Real Estate Transaction Vermonts Pilot Program Completes First
South Burlington, Vermonts Blockchain pilot program with real estate marketplace Propy has completed the first US all-Blockchain property
Comments (0)
Add a comment
Comment on