SK Securities, a financial securities company and stockbroker firm, announced that they had created a partnership with blockchain startup Kasa Korea in the development of a platform for tokenizing real estate transactions. The partnership will develop what will be referred to as the ‘Digital Real Estate Beneficiary Distribution Platform’ service.
SK Securities, which is a branch of the largest telecom company in South Korea, agreed to collaborate on the platform that will be used for the distribution of real estate beneficiary securities. Using Kasa Korea’s digital property shares will give investors the ability to trade real estate pieces using real estate scrutinize beneficiaries issued by trust companies.
In layman’s terms, this new platform will give investors the ability to purchase or trade real estate by using digital assets as their collateral. Kasa Korea was granted a special exemption by the Financial Services Commission in South Korea, which gave them the ability to sell real estate certificates using the platform. However, this was only granted on a trial basis.
Involvement in blockchain-based initiatives is nothing new at the SK Group, the parent company of SK Securities. They have been active in a number of plans and ventures to develop applications using this technology, including a recently unveiled plan to create a donation platform. SK Group has also invested about $10 million in the major global blockchain firm ConsenSys.
It is also not surprising to see another example of where this technology is being used in the real estate industry. Because of the fact that these transactions are often stored on different networks, the ability to create a secure platform that would give access to all interested parties has been the driving force behind the use of blockchain technology.
In mid-July, it was announced in Brazil would be recording all real estate transactions using blockchain platforms. On July 25, bitFlyer partnered with Sumitomo to build a real estate platform that will keep track of real estate rentals in Japan. This new platform was built as a mobile application, allowing users to sign rental agreements using the app.
The blockchain startup company Propy has become quite successful by developing platforms directly geared towards the needs of the real estate industry. They have created a blockchain registry, which allows users to buy a property over the platform’s marketplace. This was accomplished while also ensuring that the tokenization of legal rights was maintained.
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