Switzerland-based blockchain property transaction firm, Blockimmo, have partnered with Elea Labs and Swiss Crypto Tokens to put the first Swiss property on the Ethereum blockchain. The press release states that the property was “tokenized” which is where the real asset value of the property is represented on the blockchain in token form.
To avoid price fluctuation risks, the transaction was supported by Swiss Crypto Tokens’ stablecoin, the CryptoFranc (XCHF) which is pegged to the Swiss franc. Swiss Crypto Token launched XCHF in November 2018, issuing 15 million of them. The CryptoFranc serves as a liquidity instrument for the Swiss blockchain ecosystem.
Elea Labs provided the real estate data of the property, ensuring that each building has its own identity, or “Property DNA.”
Martin Schnider, CEO of Elea Labs said: “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”.
According to the press release, 20 percent of the property value was tokenized before being sold to four investors in a club deal. The tokenized property is located in Baar, in the canton of Zug, and consists of 18 apartments and a restaurant. The four transactions were carried out on the Ethereum blockchain and can be verified on the Blockimmo platform.
A Paradigm Shift For Real Estate Ownership And Trading
“I am delighted that we were able to pull off this premiere, the first property transaction through Blockimmo,” said Bastiaan Don, founder and Managing Director of Blockimmo. “The platform is the first secure blockchain product for both private and professional investors”.
Blockimmo plans to tokenize further properties that will be sold in a public crowdsale. All property tokens are expected to be listed in the second quarter of this year on a regulated exchange, which will “further improve their fungibility”.
“Traditional property investments and their issuing programmes have barely moved forward. In Switzerland, you have a non-transparent market with asynchronous information that is difficult to access. This has a negative impact on the liquidity potential of the real estate market,” said Don. “By using blockchain technology, blockimmo enables a solution to a problem, representing a paradigm shift for real estate ownership and trading”.