Buy A Hotel In Bali Via Tokenized Ownership
By Kapil Rajyaguru
Between the natural elegance, exciting lifestyle and friendly locals, Bali is one of the favorite tourist to visit.
Who wouldn’t want to spend some leisure time in the volcanic island of Bali…. But wouldn’t it be great to own a $10 million hotel at a bare minimum investment of just $1000?
Well, it’s possible by the tokenization of real estate.
Tokenisation, in this context, involves representing ownership or investment in a real estate asset in the form of a blockchain-based “token”.
The token is issued by a blockchain system, and every action taken in relation to that token, including transfers, is recorded on the same system.
Luxembourg-based tokenization infrastructure provider Tokeny has joined forces with Ethereum real-estate tokenization marketplace CoFund.
The collaboration will enable CoFund to launch regulatory-compliant ERC-3643 security tokens on the Polygon network.
The tokens will be used to tokenize a $10m hotel in the Indonesian island resort of Bali, allowing investors to own a piece of the property with a minimum investment of $1,000.
CEO of Tokeny, Luc Falempin, stated: “ERC-20 tokens and NFTs generally don’t meet compliance needs. Therefore, our technology platform leverages the ERC-3643 token standard to make sure our partners can enforce compliance, even on a permissionless blockchain.”
Tokeny’s infrastructure allows issuers to access fully auditable and immutable capitalization tables of securitized tokens directly on the blockchain. It also supports real-time distribution and transfer of tokens to investors.
In conclusion, real estate assets are typically high value and, therefore, out of reach for private retail investors. But through tokenization of real estate even a retail investor can own small chunk of large real estate. Market participants believe that tokenization will lead to democratization of real estate. But time only will tell if this trend catches on globally or not…
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