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The resources with code are here to stay. The current competition concerns who can get regulated products first on the market and who can successfully obtain the users' adoption. While several projects have demanded to focus on real estate, Blockimmo is the first to do so within the limits of existing regulations in two jurisdictions.
The blockimmo platform was recently launched with two test properties, but at the beginning of 2019 the listing of properties is expected.
The way blockimmo works is a real estate seller who lists the property on the platform, along with a token issue that will represent the shares of the property. Investors are therefore able to invest as much as they like and watch crowds progress. Various terms and limits can be placed on the sale. Once the sale is completed, each investor receives representative tokens in his portfolio, tokens that are associated with a real-world investment by an investment company in Lichtenstein.
We've already heard it before. Several projects are working on similar goals, with regulations and government approval as the main obstacle. One that comes to mind is LA Token. TrustToken aims to do similar things in the future.
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The question of enforceability arises when there can literally be dozens of owners of a single property and the pieces can be exchanged between portfolios at will. To cope with this, Blockimmo is limiting its operations to places where it is certain that it can be completely regulated: Switzerland and Liechtenstein. They intend to expand into other parts of Europe when the properties are listed successfully and the platform grows.
The properties that are sold on the platform, in a legal sense, are held by a Lichenstein company, each with its own sub-fund. This is the way in which the properties are protected in the IRL sense.
Switzerland is an excellent starting point for a project like blockimmo due to the organization of its existing land registry. The founder Bastiaan Don said of this:
The properties we have tokenise are already designated with the precise E-GRID number directly in the blockchain. This is already a known quantity in Switzerland and is already included as such in its centralized cadastre. Synchronizing systems would be a first step towards a land register on the Blockchain.
The big news of last week for blockimmo was that FINMA, the Swiss financial regulatory body, has approved both its business model and the offer of security tokens. This means that they are totally free to pursue their goals and do not have to worry about running into problems with regulators. Swiss laws still apply to listed and existing properties within Switzerland, and there are various restrictions for foreigners investing in Swiss real estate.
FINMA announced this week that blockchain companies would be able to operate successfully in Switzerland with minimal changes to the regulations.
The project resulted in a law firm called MME to help with legal problems that may arise, and also has the support of the family-run bank, Bank Frick, whose director of funds and products, Raphael Haldner, said of the project:
The implementation of projects such as blockimmo demonstrates the experience of Bank Frick in the field of digital business models and products, as well as our innovative drive.
Two example properties are live on blockimmo.ch, so the public can see how the platform works. Real listings are expected to take place as early as next month.
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