The Blockchain startup Brickblock has brought the first EU property to the Blockchain by tokenising shares, according to a March 28 press release from the company.
The two million euro home from Wiesbaden, Germany, has been sold to accredited investors in the form of tokens. The investors are thus entitled to dividends from rental income as well as interest and capital distributions.
Brickblock boss Jakob Drzazga talks about the advantages of blockchain technology over paper-based processes:
“Once a property, real estate fund or financial instrument has been tokenised, the real benefits come to bear: the following transactions are instant, virtually free of charge and, when properly executed, can be executed without counterparty risk. This is an absolute turning point for the industry.”
Brickblock barely missed the tokenisation of Europe’s first property. Earlier this month, the Swiss real estate transaction platform Blockimmo reported a similar transaction. In an equally closed sale process, tokenised shares in a property in the canton of Zug had previously been transferred to investors.
Both Blockbrick and Blockimmo are already planning further projects. While Blockbrick together with the real estate investor Peakside Capital wants to tokenize further German properties, Blockimmo has announced a public crowdsale of tokens of another property via a crypto exchange.