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Swiss Firms Execute Real Estate Transaction On Blockchain


Three Swiss firms have come together to execute the first real estate transaction on Blockchain in Switzerland through blockchain-powered property transaction platform blockimmo by tokenizing the property.

Three Zug-based companies - blockimmo, Elea Labs and Swiss Crypto Tokens - were involved in executing the deal.

Elea Labs supplied the complete, validated data for the property and Swiss Crypto Tokens enabled the transaction with the digital Swiss franc CryptoFranc (XCHF), a stablecoin linked directly to the Swiss franc. The trade volume amounted to around 3 million Swiss Franc or $2.99 million.

Last November, crypto broker Bitcoin Suisse's subsidiary Swiss Crypto Tokens launched the XCHF stablecoin to serves as a liquidity instrument for the Swiss blockchain ecosystem. It issued 15 million francs to date.

The traded volume or 20 percent of the property value was tokenized before being sold to four investors in a club deal. The tokenized property is located at Grabenstrasse 3 in Baar, in the canton of Zug, and consists of 18 apartments and the 'Hello World' restaurant.

The four transactions were carried out on the Ethereum blockchain and can be verified on the blockimmo platform.

Tokenizing is the process by which the real asset value of the property is represented digitally on the Ethereum blockchain in token form. This new financing and investment method is a product of blockimmo, which aims to be the global marketplace for tokenizing property.

Each property or building will have its own identity or "Property DNA", with all data about a property backed up and stored decentralized. The Property DNA will enable a transparent digital due diligence and will also simplify, accelerate and reduce the cost of processes across the entire real estate industry.

The decentralized property register Property DNA will enable users of the blockimmo platform to make an investment decision based on complete and validated property data.

Following this deal, blockimmo plans to tokenize further properties that will then be sold through a public crowdsale. All property tokens are expected to be listed in the second quarter of this year on a regulated exchange.

The blockimmo is working on a decentralized exchange known as STX.SWISS, which forms the basis for a new system for tokenizing, investing and trading.

The legally compliant blockchain ecosystem enables investment and ownership in fractions of properties. Property is officially represented in legally binding form as a security token on the Ethereum blockchain. The blockimmo property transaction platform allows investors to invest in properties with small amounts starting at roughly 1,000 Francs.

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