Real Estate Tokenized in Japan? New Platform Brings In Promising Results

Real Estate Japan

A Forum for Cooperation

With an abundance of uninhabited homes lining Japan’s rural regions, those who looked closely were presented with a chance. As a result, an visionary company, called LIFULL, saw this and embarked on a course that would revitalize these homes. By doing so, it will generate lucrative investment opportunities, thus ensuring affordable housing for those who need it.

LIFULL has partnered with blockchain software provider, BUIDL, in a bid to finance their projects, and overall goals. This collaboration opened the doors to digital assets and investment by creating a ‘funding platform’ by fractionalized ownership of real estate.

The company Securitize acquired BUIDL since then. Nevertheless, this did not have a negative effect on the project that had already been developed. Securitize, on the contrary, has taken a stance that suggests they will continue to support this exciting project.

Performance Proved

What is remarkable about this particular partnership is that the advantages have been shown to be true, frequently claimed by those pro-security tokens. This move is not made on the basis of potential being realized, but because of confirmed benefits.

The companies noticed that these advantages were most apparent in four situations during the initial phases of the project. The following is an extract from their publication, which explains exactly what these were.

  • Verification of reduction of operating costs by automated execution of protection token allocation, dividend and smart contract redemption
  • Distribution of security tokens triggered by bank API (GMO Aozora Net Bank, Ltd.) deposit data;
  • Usage of smart contracts on the blockchain to execute dividends and redemptions automatically according to security tokens ownership ratio
  • Investors and third parties can test the operation of the aforementioned smart contract and the flow of funds and tokens within a transparent, manipulative-resistant financial chain (Ethereum mainnet)

Main Target

There are seemingly intense mentalities surrounding digital securities to date. Although some are happy with their expectation that tokenization will favor only a select few asset classes, there are others who assume that one day all of value will be represented by tokens.

One thing that all seem to agree on is that immovable property is a great testing ground to demonstrate what digital securities can bring to the table.

This agreement was made evident not only by Securitize, but also by numerous industry players on a global scale, through moves made. Below are only a few examples of this.

Commentary

Representatives from each, LIFULL and Securitize, took the time to reflect upon the announcement of this new initiative. The following is what each had to say.

Tsunahiro Matsuzaka, LIFULL Project Manager believes they’ve learned a lot from the research done with BUIDL. LIFULL will continue to work with Securitize to create a future in which real estate is tokenized and anyone can exchange openly. Carlos Domingo, Securitize CEO, stated that their collaborative success in developing a robust platform solution for crowdfunded real estate funds is very exciting, and it’s a great start for Securitize and LIFULL as they strive to modernize Japanese real estate.

Securitisate

Securitize was created in 2017, and is a tokenization platform that manages operations in the US. Securitize has continued to establish itself as a clear leader in the digital securities sector since its launch, in part thanks to strategic alliances such as the one addressed here today.

CEO Carlos Domingo is currently managing operations at the firm.

LIFULL

LIFULL, founded in 1997, operates from Tokyo, Japan. Above all, in addition to the associated ancillary facilities services, the business is specialized in real estate revitalisation ventures.

Chairman Takashi Inoue currently oversees the activities of the organization.

Japanese Growth

Japan has shown impressive adoption rates around digital securities in the past year. The growing involvement of industry leader, Securitize, is one of the reasons for this.