The first real estate transaction on the blockchain was successfully completed in Switzerland. The feat was achieved by Blockimmo Ltd, a blockchain proprietary transaction platform, in collaboration with two other companies.
A blockchain property deal worth 3 million Swiss francs (Swiss franc approximately $ 2.98 million) was conducted by Elea Labs Ltd, Swiss Crypto Tokens Ltd and Blockimmo for a transaction consisting of a restaurant and 18 apartments.
In the form of tokens, the real asset value of the object is now displayed in digital form in the Ethereum blockchain (ETH). To avoid the risks associated with price fluctuations, crypto-franc (XCHF), a Swiss stable coin tied to the Swiss franc, was used to support the transaction.
Martin Schneider, director general of Elea Labs in Switzerland, said that in order to ensure the assignment of Property DNA (the unique identity of each building), Elea Labs provided property data on the property with transparent digital due diligence, which will be provided by Property DNA.
The end product is improved process efficiency and cost reduction.
Blockimmo regarded development as the first step to further tokenization of properties. Property tokens are expected to be listed on the regulated exchange by the end of this year.
Along with Blockimmo, the US-based real estate platform RealBlocks has successfully completed an initial round of financing. The firm has developed a decentralized platform for the distribution of shares of private equity funds.
