With every passing day, blockchain technology spreads its wings to a new industry. Now, a Swiss company has conducted a real estate transaction on the blockchain. Announcing the ground-breaking achievement, Blockimmo expressed its hope that it would forge a new path for the real estate industry.
The transaction was made possible by two other companies. Elea Labs provided the validated data for the property, while Swiss Crypto Tokens provided the stablecoin used. The stablecoin, known as CryptoFranc, is pegged to the Swiss Franc and protects the property against price fluctuations associated with cryptocurrencies.
Bastian Don, the founder of Blockimmo stated:
“I am delighted that we were able to pull off this premiere, the first property transaction through Blockimmo. The platform is the first secure blockchain product for both private and professional investors.”
Blockchain real estate transactions involve the digital representation of the property value on a blockchain. Price fluctuations have been one of the biggest impediments in the industry. However, with the use of stablecoins, blockchain startups have overcome this challenge.
Don believes that the transaction represents the future of the real estate industry. Despite technology overhauling most industries, the real estate industry is set in its old ways.
“By using blockchain technology, Blockimmo enables a solution to a problem, representing a paradigm shift for real estate ownership and trading,” he said.
Blockimmo tokenized 20 percent of the property value, worth CHF 3 million ($2.9 million). The tokenized property was then sold to four investors. It’s located in Zug, the crypto valley as it has come to be known due to its high number of crypto startups. It consists of 18 apartments and a restaurant.
Elea Labs, which provided the property data, aims to digitize each property in Switzerland. The startup collects data about a property and then stores it in a decentralized network. This data, which it refers to as Property DNA, is available to the public.
Martin Schnider, the CEO of Elea Labs explained:
“With the decentralized property register Property DNA we enable users of the Blockimmo platform to make a sound investment decision based on complete and validated property data. In the future, the Property DNA will enable a transparent digital due diligence and will also simplify, accelerate and reduce the cost of processes across the entire real estate industry.”
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