Digital Assets: Crowdfunding Via Blockchain to Transform Japanese ‘Ghost’ Dwellings

March 11, 2020 | Digital Assets, News, Real Estate

Two companies are collaborating to revitalize the market for Japanese homes.

A blockchain-powered solution may be the answer to the problem of abandoned real estate in Japan. Known as ‘akiya’ these ghost dwellings numbered about 8 million in 2013. This number has now ballooned to 10 million by 2020, and is on track to comprise 30% of all Japanese homes by 2033. Real estate crowdfunding via the blockchain may give these properties a new lease of life, according to Securitize. (BTCMANAGER)

A partnership to tackle the problem of abandoned real estate in Japan

Securitize, a compliance platform for token issuers, has tied-up with LIFULL, a Tokyo-based housing and real estate information listing service. Together, the companies will offer a crowdfunding platform that will issue digital securities in return for investments in Japanese real estate.

Kanagawa-based consultancy BUIDL Ltd, which is now a subsidiary of Securitize, had initially commenced the project.

In a statement, LIFULL said that the nationwide problem of abandoned houses could be solved through the renovation and conversion to other uses. Unfortunately, traditional modes of financing such renovations are impractical. That’s because these dwellings command negligible valuations.

However, the answer to the problem may lie in regionally focused real estate crowdfunding.

Initial tests are successful

According to a post in Medium, in the initial first phase the two companies proved that crowdfunded real estate funds could successfully run using digital securities and blockchain technology. The test provides a glimmer of hope for the huge number of moribund dwellings in the Japanese countryside.

“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,” said Carlos Domingo, Securitize Inc. CEO and Co-Founder.

Moreover, the test was successful on various parameters, including a verifiable reduction in operating costs, automatic distribution of security tokens, successful operation of smart contracts and complete transparency in the flow of funds, smart contracts and tokens.

Tsunahiro Matsuzaka, LIFULL Co., Ltd. Project Manager said LIFULL commits to a future where everyone can trade real estate freely using tokens.

Related Story:   iFunded to Accept Both Retail and Institutional… And Fiat and Crypto                                                

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Liquid Alternatives: Watch Out For These “Potholes” (Goldman Sachs)
October 21, 2020     Liquid Alternatives, News

Theodore Enders, Global Head of Goldman Sachs Asset Management (GSAM) Strategic Advisory Solutions, says that investors are sometimes disillusioned with their investments in alternatives. However, on closer analysis, it turns…
Digital Assets: Sovereign Wealth Funds The Unseen Gorilla In The Bitcoin Room
October 21, 2020     Digital Assets, News

There has been a remarkable change in recent months in the perception of bitcoin as an investible asset. Large, listed companies have parked sizable chunks of their cash reserves in…
FinTech: Digitization And Fintechs Make Inroads Into Asia’s Retirement Funds
October 21, 2020     FinTech, News

A report from Cerulli Associates shows that retirement funds in Asia are upping their game in a drive to become more transparent, streamline their administrative processes, and give fund members…
Venture Capital: Kalanick, of Uber Fame, Buys $130M of Real Estate For CloudKitchens Startup
October 21, 2020     News, Venture Capital

You could call it providential timing, but Kalanick’s CloudKitchens startup received a huge boost from the Covid-19 pandemic. With restaurants out of business, or temporarily shuttered, shelter in place diners…