Quick Intake
Asset Tokenisation by EMAAR !
So what is asset tokenization? is that mean something related to cryptos kind of thing?
Yes, it means converting an immovable property into various cryptos/tokens, each representing a part of the ownership of property. This is an innovative concept where multiple parties can now become the owner of a single immovable property to the extent he can invest.
Real estate tokenization is a popular application, which is the process of creating a digital asset that represents a single property or a portfolio of properties on a blockchain-based system
Through this process, Higher liquidity can be ensured to the owner of the property as these are tradeable just like shares to external parties
Happy Reading…
UAE based property developer EMAAR plans to pilot tokenization of its real estate assets. The news was revealed by an outgoing executive of Swisscom Blockchain, which is working with EMAAR on the project.
EMAAR’s assets include the world’s tallest building, the Burj Khalifa, which the executive claims are one of the assets to be tokenized. It also owns the Dubai Mall. In a recent announcement, EMAAR stated it sold over 30,500 residential units in the last ten years for $24 billion.
We contacted EMAAR for comment but didn’t receive a response by publication time. We initially reported that the tokenization would use Hedera Hashgraph. But after publication, an Emaar spokesperson asked us to correct it to IBM’s DLT, which is the enterprise blockchain Hyperledger Fabric.
The real estate company already has a blockchain rewards app. The EMR platform was launched at the end of last year, where the tokens can be redeemed at its properties, hotels, e-commerce operations, and malls. At the time of launch, the property firm was keen to emphasize that the loyalty tokens were tradable.
Real estate tokenization is a popular application. Nine months ago, tokenization firm Liquefy said it had partnered with a consortium of Gulf families and planned to tokenize a Mayfair hotel. No further details have been revealed, but Liquefy helped Hong Kong property firm Stan Group to use tokenization in its “Buy-a-Brick” solution to reward staff.
A large amount of real estate activity is in Asia. In Japan, Lead Real Estate plans to tokenize Tokyo real estate projects on a platform built by Securitize. And Tokai Tokyo and iStox invested in Hash Dash Holdings. Other examples include initiatives in Brazil, Korea, and Germany.
