Securitize creates digital security funding platform for investing in real estate in Japan

Securitize creates digital security funding platform for investing in real estate in Japan

Securitize partners with Japanese firm LIFULL in a digital security issuance system in the country for the real estate industry. The new platform uses digital securities for investing in real estate in Japan using methods like crowdfunding. The partnership is based on the goal of revitalizing vacant homes in that country.

Digital securities for real estates

LIFULL Co., Ltd planned a project aimed at using digital securities and blockchain in the real estate industry. The project started in partnership with BUIDL, Ltd. and LIFULL Social Sunding Co., Ltd. Securitize acquired BUIDL in December 2019 and now commits to continue the collaboration with Japanese companies.

The first phase of the platform is ready, and Securitize will implement it soon with the help of LIFULL. The test phase approved effective in raising funds for real estate projects using digital securities and blockchain. The operational costs were reduced compared to traditional fundraising methods. Automatic execution of security token distribution using smart contracts, decreased operational costs.

The companies mentioned above partnered with local banks to develop and implement the platform. GMO Aozora Net Bank provided an API for the platform that sends the deposit data to the platform. The security tokens distribution triggered based on that data.

Besides, the platform is based on Ethereum mainnet, and investors and third parties can check the flow of the funds and tokens in a public environment. Holders of digital securities can access to simple user experience in the platform. Executing dividends and redemptions also is based on smart contracts on the blockchain.

Securitize provides digital securities in capital markets and modernizes them using technologies like blockchain. It claims digital securities are more comfortable to own and more straightforward to manage. It has a platform named DS Protocol that is widely used for digital tokenization.

“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, CEO, and Co-Founder at Securitize Inc.