Collaborative Platform

With an abundance of uninhabited homes lining rural regions of Japan, an opportunity was presented to those that looked closely. As a result, an ambitious company, by the name of LIFULL, saw this and set out on a path that would see these homes revitalized. In doing so, lucrative investing opportunities would arise, while providing affordable housing to those that need it.

In a move to fund their efforts, and overall goals, LIFULL partnered with blockchain tech provider, BUIDL. This partnership opened the doors for digital securities, and investing through fractionalized ownership of real estate, by developing a ‘funding platform’.

In the time since, BUIDL has been acquired by Securitize. This, however, has not had a negative impact on the previously established project. On the contrary, Securitize has taken a stance indicating that they will continue to back this promising project.

Proven Results

What is notable about this particular collaboration is that the benefits, often touted by those pro-security tokens, were proven to be true. This move is not being made on the possibility of realized potential, but due to verified benefits.

The companies noted that through the initial stages of the endeavour, these benefits were most obvious in four scenarios. The following is an excerpt from their release, describing just what these were.

Verification of operational cost reduction by automatic execution of security token distribution, dividend and redemption by smart contract

Distribution of security tokens triggered by deposit data obtained from Bank API (GMO Aozora Net Bank, Ltd.)

Using smart contracts on the blockchain to automatically execute dividends and redemptions according to the ownership ratio of security tokens

Investors and third parties can check the operation of the above smart contract and the flow of funds and tokens in a public, tamper-resistant public chain (Ethereum mainnet)

Prime Target

To date, there seem to be extreme mentalities surrounding digital securities. While some are content with their belief that only a select few asset classes stand to benefit from tokenization, there are others that believe everything of value will one day be represented by a token.

One thing that all appear to agree on, is that real estate is a perfect testing ground for demonstrating what digital securities can bring to the table.

This agreement has been made obvious through moves made, not just by Securitize, but through various industry participants on a global scale. The following are a few examples of this.

Smartlands to Tokenise Nottingham Real Estate through STO

Flyt Property Brings First Tokenized Real Estate STO to Aftrica

Luxembourg Home to Real Estate Successfully Tokenized through Tokeny

Commentary

Upon announcing this new project, representatives from each, LIFULL and Securitize, took the time to comment. The following is what each had to say.

Tsunahiro Matsuzaka, Project Manager at LIFULL, states,

“We have learned a lot from the work we did with BUIDL. We will continue to work with Securitize to build a future where real estate is tokenized and everyone can trade freely.”

Carlos Domingo, CEO of Securitize, states,

“Our collaborative success in creating a comprehensive platform solution for crowdfunded real estate funds is very exciting, and it is a great start for Securitize and LIFULL as we work to modernize the Japanese real estate market together.”

Securitize

Founded in 2017, Securitize is a tokenization platform, which maintains operations in the United States. Since launch, Securitize has gone on to establish themselves as a clear leader in the digital securities sector, partly thanks to strategic partnerships such as the one discussed here today.

CEO, Carlos Domingo, currently oversees company operations.

LIFULL

Founded in 1997, LIFULL maintains operations out of Tokyo, Japan. Above all, the company specializes in real estate revitalization projects, in addition to related ancillary services.

President, Takashi Inoue, currently oversees company operations.

Japanese Growth

In the past year, Japan has shown noteworthy levels of adoption surrounding digital securities. One of the reasons for this is the increased presence of industry leader, Securitize. The following are multiple articles discussing past events involving Securitize and their expansion into Japan.

Securitize Increases Ties to Japan through First Acquisition

Securitize to Expand within Japan after Recent Investment