The quest to tokenize everything that is not on the tree at three breaks away. For real estate or property rights to these, the use case of blockchain technology is close. For example, the New York startup Factora organized the successful tokenization of a business building in the heart of New York in February. In this country too, a fintech company reached a milestone on the way to a tokenized world in February. Bitbond was the first company to receive the coveted BaFin blessing for issuing tokenized debt securities via STO.
Now with Brickblock another German company announces the tokenization of an asset. Similar to the Factoras project in Brooklyn, this is also about a property. However, the building in Wiesbaden is a residential property. Property shares with a total volume of two million euros were issued. According to a press release available to BTC-ECHO, the real estate shares were sold to accredited investors only. This distinguishes Brickblock’s approach from the Bitbonds, whose STO thanks to the BaFin license was also able to attract small investors.
An absolute turning point in the industry
By acquiring or owning the token, investors are entitled to dividends from rental income as well as interest and capital distributions. Brickblock boss Jakob Drzazga praises the benefits of Blockchain technology over paper based processes as follows:
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Once a property, a real estate fund or a financial instrument is converted into tokens, the real benefits come into play. Follow up transactions are immediate, almost free of charge and, if properly implemented, without counter party risk. This is an absolute turning point for the industry.
Also published on Medium.