Another One For Europe As Ethereum-Backed, Blockchain-Powered Real Estate Sells In Luxembourg : Real Estate : Business Times

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Blockchain technology claimed another victory as it was used to sell real estate in Luxembourg. The European country recorded its first-ever blockchain-backed real estate transaction, The Tokenist reported.

The transaction made use of the Ethereum blockchain and sold a property located in the locale of Belval in Luxembourg.

The company involved in the transaction was Property Token SA, while Tokeny, CoinPlus, and INNO provided the technology to make it possible. These companies are based in Luxembourg.

Tokenization of the property meant that investors and interested parties had the choice to hold security tokens that were registered on the Ethereum blockchain.

These coins represented fractional ownership to the luxury property located in Belval. Investors were also given the chance to own property for a down payment as little as €1,000, according to insiders.

Blockchain made the tokenized ownership and not having to buy the whole property possible. It also gave certain access to the property in ways that traditional financial security processes never allowed. Property Token SA also believed that such processes will be in the future of the real estate.

The interest in this potential to tokenize real estate has been one of blockchain’s key selling points to mass adoption. Irish Tech News reported that another German company called Fundament received permission from BaFin or the German Financial Market Supervisory Authority. This is for the issuance of €250 million of bonds with the use of the Ethereum blockchain.

These transactions appear to have attracted the attention of the Royal Mint. With Property Token SA tokenizing property in Luxembourg and BaFin issuing Ethereum bonds, the Royal Mint allegedly is considering offering custody services for Temtum, a new type of blockchain-based service.

One of the hardest challenged for token-holding institutions is custody. The Royal Mint news should be taken with a grain of salt, considering that having tokens-whether for exposure of a direct property or backed by bonds for a property-is difficult.

Given these difficulties, blockchain has been used for a lot more things than real estate. Security tokens have been used for equities, investment funds, and even in the fractional ownership of other high-value objects, like fine art, for instance.

With a rising emergence for the need of tokenized offerings, blockchain may soon come under regulatory scrutiny. It will be a good thing for blockchain, who aims to gain legitimacy for use in more transactions than ever.