Blockimmo, Elea Labs and Swiss Crypto Tokens have carried out “the first” real estate blockchain transaction of $3 million in Switzerland.
March 6, 2019, | AtoZ Markets - Blockimmo Ltd, a Blockchain property transaction platform has successfully completed “the first” real estate transaction on a blockchain in Switzerland, along with two other companies.
According to the announcement by Blockimmo on 01 March 2019, Blockimmo, Elea Labs Ltd. and Swiss Crypto Tokens Ltd. conducted a real estate blockchain transaction of $3 million that consists of 18 apartments and a restaurant.
Switzerland's Real estate blockchain named as "Property DNA"
The property was tokenized i.e. its real asset value is now represented digitally on the Ethereum blockchain platform in the form of tokens. Supported by Swiss Crypto Tokens’, the transaction was processed by a stablecoin which is pegged to the Swiss franc, the CryptoFranc (XCHF), to avoid price volatility risks.
Bastiaan Don, founder and Managing Director of Blockimmo quoted that:
“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.”
He also believes that the traditional property investments and their issuing programmes have barely moved forward. Switzerland has a non-transparent market with asynchronous information that is difficult to access. Also, this has a negative impact on the liquidity potential of the real estate market. By using the blockchain technology, Blockimmo enables a solution of a problem which represents a paradigm shift for real estate ownership and trading.
Another Swiss firm – Elea Labs is handling the real estate data of the property. They ensure that every building has its own identity which they named as “Property DNA.”
Moreover, the CEO of Elea Labs, Martin Schnider, stated:
“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.”
This marks as the first step towards further tokenization of properties that Blockimmo is planning to sell through a “public crowdsale.” The property tokens are expected to be listed on a regulated exchange by the second quarter of 2019. Switzerland has been constantly moving towards becoming a blockchain and crypto-friendly country, all thanks to its positive treatment of the technologies. Lucerne University of Applied Sciences has recently revealed that the Swiss FinTech market grew by 62 % in 2018.
Tokenized property in the canton of Zug
Around CHF 3 million, or 20 percent of the property value, was tokenized before being sold to four investors in a club deal. The tokenized property is located at Grabenstrasse 3 in Baar, in the canton of Zug. It consists of 18 apartments and the ‘Hello World’ restaurant. This makes the site of the first property in Switzerland that also has a ‘digital twin’ on the blockchain. The four transactions were carried out on the Ethereum blockchain and can be verified on the Blockimmo platform.
The transaction was supported by Elea Labs, which supplied the real estate data of the property. The company aims to ensure that each building has its own identity. This makes the property real and all the data about a property is stored in a decentralized way.
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