The first real estate transaction on blockchain has been successfully completed in Switzerland. The feat was achieved by Blockimmo Ltd, a blockchain property transaction platform, in collaboration with two other companies.
The blockchain-backed real estate transaction, worth CHF 3 million (Swiss francs approximately USD 2.98 million), was conducted by Elea Labs Ltd, Swiss Crypto Tokens Ltd and Blockimmo, for a deal consisting of a restaurant and 18 apartments.
In the form of tokens, the property’s real asset value is now digitally represented on the Ethereum (ETH) blockchain. In order to avoid risks related to price fluctuations, the CryptoFranc (XCHF), the Swiss stablecoin pegged to the Swiss franc was used to support the transaction.
CEO of Switzerland-based Elea Labs, Martin Schnider, stated that in order to ensure that Property DNA (each building’s unique identity) is assigned, Elea Labs provided the real estate data of the property, with transparent digital due diligence to be provided by Property DNA.
The end product is enhanced efficiency of the process along with a reduction in cost.
Blockimmo regarded the development as the first step towards further tokenization of properties. It is expected that property tokens will be listed on a regulated exchange by the end of the ongoing year.
Along with Blockimmo, US-based blockchain-supported real estate platform RealBlocks has successfully completed a seed funding round. Reportedly, a decentralized platform tokenizing shares of private equity funds has been developed by the firm.
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