Successful Case Studies of Fractionalized Real Estate

With blockchain technology in place within these few years, fractionalized real estate is when the ownership of a real estate asset is put on a blockchain by creating digital tokens. Full transparency, top-notch security and better efficiency are some of the benefits of fractionalized real estate. Currently, this never-seen-before tokenized real estate has finally seeped into the real world bit by bit and many property and real estate assets are reaping tremendous benefits.

This article will show 3 real-life successful case studies that are happening around the world where fractionalized real estate is no longer a concept only. 

source: freepik@videoflow

Case #1. Legend Siam Theme Park in Thailand

In Pattaya, Thailand, a well-known tourist attraction, is where you can find the Legend Siam Theme Park. The theme park spans 65 acres, and the overall project is valued at USD 131 million. It can accommodate 20,000 guests and has 100 bus parking spaces and 1,000 automobile parking spaces available. 

Via East West Capital, a nodeblock technology investment platform tokenized Legend Siam Theme Park on their private blockchain by creating Legend Siam Coins (LST). Investors may manage their investments with complete transparency thanks to nodeblock technology. Security tokens are traditional assets like stocks and bonds that have been tokenized on a blockchain for greater liquidity and transparency. The security token offerings are available to certified overseas investors and other qualifying buyers.

The Legend Siam Token (LST) sets a model for future real estate tokenization in addition to being a brand-new asset-backed coin in the market. Real estate investing provides global exposure, transparency, and liquidity in the future. This offering has also been submitted to U.S. Securities and Exchange Commission. 

source: medium.com

Case #2. Historical Lueneburg Token in Germany

The historical building, which lies in the centre of Lueneburg's charming Old Town and is close to several shops, cafes, and quaint eateries, was first referenced in 1342. The tokenized real estate for the Lueneburg building was a dream come true thanks to the $1,500,000 contributed by the Lüneburg neighbourhood. 

The building has been able to keep some of its historical significance, and investors can benefit from the interest rate of 5% each year.

Case #3. Hello World in Switzerland

Source: Fintech News Switzerland

The tokenized property is a restaurant called "Hello World," situated at Grabenstrasse 3 in Baar, in the canton of Zug. As a result, Baar is the location of the first Swiss property to have a "digital twin" on the blockchain. The four transactions are confirmed on the blockimmo platform and were completed on the Ethereum blockchain.

The use of "CryptoFranc," a stablecoin, helps to eliminate the dangers associated with cryptocurrency price fluctuations. The cryptocurrency broker, Bitcoin Suisse, through its subsidiary Swiss Crypto Tokens, sponsored the transaction. The investment was made using the digital Swiss franc CryptoFranc, or "XCHF," from Swiss Crypto Tokens for the Baar property. The CryptoFranc serves as a liquidity instrument for the Swiss blockchain ecosystem.

Conclusion

The three successful case studies above only prove further how the tokenized real estate assets are only just starting. It’s only a matter of time and combined efforts that all the other countries follow suit. The possibilities of real estate on blockchain technology are truly endless and limitless. 

Security tokens provide several advantages over conventional security transactions, including the capacity to increase market accessibility and transparency, enable 24/7 immediate trading, add liquidity to often illiquid markets, such as real estate, and open up investment opportunities to new sorts of investors.