Securitize and LiFULL to Transform Japan’s Real Estate Ecosystem with Blockchain
According to a blog post on March 10, Securitize, a project that pretends to be focused on promoting compliant trading of private securities on public blockchains and multiple exchanges has signed a deal with LIFULL, a Tokyo-based housing, and real estate information listing service, to build a funding platform for real estate investing.
Securitize Revitalizes Vacant Japanese Homes with Blockchain
In 2013, there were approximately 8 million abandoned homes in Japan, out of a total of 60.6 million households in the country. Fast forward to 2020, and that figure has grown to more than 10 million. Japan’s Ministry of Internal Affairs and Communications pred that around 30% of all homes in Japan will be vacant by 2033.
To make the most of this disturbing situation, Securitize and LiFULL have collaborated to launch a blockchain-based initiative intended at revitalizing these abandoned properties through real estate crowdfunding.
The real estate project was begun by BUIDL, Ltd, a Kanagawa-based subsidiary of Securitize that provides consultancy services, in association with LIFULL Social Funding Co., Ltd, as stated in its blog post.
Phase 1 Successfully Completed
Interestingly, the team has made it evident that the first phase of the project has been accomplished satisfactorily, as they were able to confirm that real estate crowdfunding powered by digital securities and DLT (distributed ledger technology) is far more practical as compared to traditional structures and it also decreases operational costs.
Reflecting on the project, Carlos Domingo, CEO and Co-founder of Securitize, restated that the team is poised to renew the Japanese real estate industry, and the project is fast producing the desired result.
In his words:
“Our collaborative success in creating a comprehensive platform solution for crowdfunded real estate funds is inspiring, and it is a great start for Securitize and LIFULL as we work to modernize the Japanese real estate market together.”
Distinctly, the team states a lot of milestones were touched during the project, including the verification of notable reduction of cost of operations by automatic execution of security token distribution, dividend, and redemption by smart contracts.
Smart contracts were utilized to automatically administer dividends and redemptions according to the number of security tokens held by participants, and there was complete transparency in the whole operation as investors could track the flow of funds through the Ethereum blockchain.
In related news, in February 2019, Securitize collaborated with an asset management company, Elevated Returns, to provide investors tokenized real estate assets worth $1 billion on the Tezos blockchain.