Blockkimo Ltd, a Blockchain property transaction platform has successfully completed “the first” real estate transaction on a blockchain in Switzerland, along with two other companies.
According to the announcement by blockimmo in a blog post on Mar.1, Blockimmo, Elea Labs Ltd., a proptech company and Swiss Crypto Tokens Ltd., a digital assets service firm conducted a blockchain-based real estate transaction that consists of 18 apartments and a restaurant, at a cost of 3 million Swiss francs ($2.98 million).
Reportedly, the property was reportedly tokenized i.e. its real asset value is now represented digitally on the Ethereum (ETH) blockchain in the form of tokens. Supported by Swiss Crypto Tokens’, the transaction was processed by a stablecoin pegged to the Swiss franc, the CryptoFranc (XCHF), in order to avoid price fluctuation risks
The real estate data of the property was provided by Elea Labs. They ensure that every building has it own identity aka “Property DNA.” The CEO of Elea Labs, Martin Schnider, stated:
“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.”
The post further states that this marks as the first step towards further tokenization of properties that blockimmo is planning to sell through a “public crowdsale.” The property tokens are expected to be listed on a regulated exchange by the second quarter of 2019.
Switzerland has been constantly moving towards becoming a blockchain and crypto-friendly country, all thanks to its positive treatment of the technologies. Lucerne University of Applied Sciences has recently revealed that the Swiss fintech market grew by 62 % in 2018.