They sell property of more than EUR 6 million in France through Ethereum tokens.

Last week, AnnA Villa, in Paris, France, made history by becoming the first European property to be sold in its entirety through a blockchain transaction, made on the Ethereum network.

The luxurious building is located in the Boulogne-Billancourt district of the French city. It was valued at EUR 6.5 million and sold to the French real estate companies Sapeb Immobilier and Valorcim. The process involved first transferring ownership of the building to a limited company (SAPEB AnnA). Then the company was divided into 100 tokens to be distributed to the owners. Each token can be divided into 100,000 units. That is, the individual shares of the building can be bought and sold for only EUR 6.50.

The negotiation of the property was managed by the blockchain investment platform established in France Equisafe and based on a token in the Ethereum network. It was the last of several global efforts to bring real estate sales to a blockchain. Last year, a property of Manhattan (New York, United States) of USD 30 million was also tokenized in Ethereum. In January of this year, a luxury resort in Aspen, Colorado, raised USD 18 million through an offer of security tokens.

Real estate has often been touted as a mature industry for tokenization, as its low liquidity and high barrier to entry deter many potential investors. The division of immovable property into fractional ownership would allow the general public to easily access small shares, allowing properties to be exchanged in a similar way to other values ​​based on exchange.

A search for real estate tokens reveals that dozens are already being negotiated in secondary markets. For example, the digital equity group Elevated Returns plans to tokenize real estate in Thailand for USD 100 million. BRIKCOIN, based in the United Kingdom, also hopes to use blockchain technology to build affordable housing.

Beyond the advantages of liquidity, the tokenization of the real estate process offers many other advantages over a traditionally antiquated process. For example, in the sale of AnnA Villa, much of the cumbersome legal documentation related to the sale of properties (such as notarial deeds and proof of identity) was encrypted and recorded in the block chain. If it is scaled effectively, the time and cost saved by not having to manually verify this information could be huge. Equisafe has even stated that people can create profiles of investors and access offers in less than half an hour.

The real estate industry is still very new in blockchain. However, there seems to be a sustained interest in what technology could provide to move forward. With a few experiments that can be mentioned, it is likely that this agreement has many eyes waiting to see results.


Image: Pixabay

Disclaimer: InfoCoin is not affiliated with any of the companies mentioned in this article and is not responsible for their products and / or services. This press release is for informational purposes information does not constitute investment advice or an offer to invest.

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