Luxembourg Completes First Blockchain-Tokenized Real Estate

Wilfred Michael 

Wilfred Michael

News reporter

25 July 2019,
15:08
Luxembourg Completes First Blockchain-Tokenized Real Estate

The concept of tokenizing of real-world assets with blockchain technology hit a new milestone in Luxembourg this week according to an update by the local technology news agency, Silicon Luxembourg.

The milestone event involved the issuing of security tokens on the Ethereum blockchain, with the tokens representing fractional ownership to a luxury property situated in Grand Duchy, Belval, Luxembourg.

Excitingly, the issuance of the security tokens also involved four local companies with real estate startup, Property Token SA initiating the trade while Tokeny, CoinPlus, and INNO supplied the required technology.

Meanwhile, as with a majority of blockchain tokenized real-world assets, the landmark deal offered the opportunity for even non-accredited investors to invest in a large scale real estate property.

Property Token SA confirmed that even investors with €1,000 could purchase units of security tokens for the project, allowing them to own real estate without the hassle involved in doing it the traditional way.

Similarly, these investors can expect to receive rents and any capital gains on resale being automatically allocated to them in proportion to their contribution to the property.

They also would not have to worry about operational management concerns and liquidity. Instead, they would enjoy the transparency feature of blockchain technology, which enables them to monitor the project’s funding capacity in real-time.

Without a doubt, the latest development in Luxembourg continues the increased rate at which companies globally are embracing the concept of tokenization.

Earlier this month, Stmarket.co reported that fund manager, Da Vinci Capital started the security token offering (STO) for Gett Taxi, a ride-hailing startup in the USA, Russia, Israel, and the U.K.

 

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