The year has started with a series of announcements about tokenization in different sectors. On this occasion, a blockchain gaming platform announced its partnership with Labs Group to issue non-replaceable tokens (NFTs) of real estate assets.
Global real estate market is valued at $ 228 trillion
According to the Announcement, the blockchain real estate company will use the Enjin platform to store and issue NFTs. People will be able to buy fractional real estate assets starting at $ 100, taking the first step towards real estate-related investments.
Since the global real estate market represents the largest asset class in the world, at $ 228 trillion so far, Enjin expects fractional share tokenization to increase liquidity.
All tokens processed on the Enjin platform pass through the Ethereum blockchain. Enjin also clarifies that it can avoid settlement periods by channeling such transactions across that network.
Maxim Blagov, Enjin’s CEO, commented on the blockchain gaming company’s interest in the real estate market:
The real estate sector offers a product that is fundamental to our survival, which is why the market is so stable. It’s only a matter of time before real estate is tokenized. Together with Labs, we can be one of the first movers to disrupt one of the world’s oldest markets.
What specific assets do the minted tokens represent?
Newly approved property owners, real estate groups and developers can hit NFTs. According to the announcement, such tokens represent fragments of apartment units, hotel rooms, or entire buildings. Thereafter, the NFTs can be traded by the holders through the Labs Security Exchange.
Yuen Wong, CEO of Labs Group, commented:
We knew Enjin was the right choice when selecting a blockchain integration partner to represent our real estate assets. The team’s experience building technology and their partnerships made it a great idea for us.
Recently, news.Bitcoin.com reported that Swiss digital asset bank Sygnum and Fine Wine Capital AG launched collectible premium wine-backed tokens and became the first under the new blockchain rules.
What do you think about real estate asset tokenization? Let us know in the comments below.
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