Tokenized assets are here to stay for a long time. The race which started recently is about who can actually get regulated products to the market first and after that, who can successfully gain user adoption. Although a few projects have purported to tokenize the real estate assets, Blockimmo is the first one to do it within the bounds of existing regulators in two different jurisdictions.
The launch of the Blockimmo platform real estate seller
The Blockimmo platform has been launched in recent times with two test properties, but they also intended to have actual real estate listed at the start of the new year.
The way in which Blockimmo works is a real estate seller who lists the property on the platform, together with the issuance of tokens that are going to represent shares of the property.
Investors will then have the ability to invest however much they like and watch the crowdsale progress. Different terms, as well as limits, can also be placed on that same sale. Once the sale is complete, each person that is interested in receiving representative tokens in their wallet, tokens that are connected with a real-world holding by an investment firm in Lichtenstein.
Every one of us heard this before. There are a few projects which work on some similar goals, with regulations, as well as government approval being the first stumbling blocks. One which actually comes to mind is LA Token. TrustToken has the purpose to do some similar things in the near future too.
The properties held by Lichtenstein firm
The question of enforceability actually arises when there can be dozens of owners of one single property and the tokens can also be swapped between wallets at will. In order to deal with this, Blockimmo limits its operations to places where it is sure it can be adequately regulated, such as Lichtenstein and Switzerland. They also intend to expand to some other parts of Europe as properties are successfully listed and the platform also grows.
The properties which are actually sold on the platform, in a legal sense, are held by a firm from Lichtenstein, every one with its personal sub-fund. This is how the properties are secured in an IRL sense.
Switzerland is another excellent place to begin such a project like Blockimmo as of the organization of its existing land registry. The founder of Blockimmo said that the properties they tokenize are already designated with the precise E-GRID number, directly in the blockchain. This is already a known quality in Switzerland, and they are also entered as such in their own, centralized land register on the Blockchain.
Blockchain companies able to successfully operate in Switzerland
Last week’s big news for Blockimmo has been that FINMA, which is a Swiss financial regulatory body, had approved both their business model, as well as their security token offering. This actually means that they are entirely free to pursue their goals, and do not have to worry about having any problems in the future with the regulators. The laws of Switzerland still apply to some properties which are listed and exist within the country, and there are different restrictions on foreigners that invest in the Swiss real estate.
FINMA also announced that blockchain companies are going to have the ability to successfully operate in the country with just minimal charges to its regulators.
The project was brought in a legal firm which is called MME to help it with legal problems which may arise. Also has the backing of the family-run bank, Bank Frick, whose director of funds and products, named Raphael Haldner said of the project that the implementation of such projects illustrates the expertise of Bank Frick in the area of digital business models, as well as products, and their innovation drive too.
At the blockimmo.ch, there are two example properties live so that the public can see how the platform is intended to work. Real listings are also expected to happen as early as the following month.