——Real estate is a representative real asset and is popular in both real demand and investment. DX using NFT has been a trend in recent years, but what are its benefits?

As you know, DX has been accelerating in all fields in recent years. There are a wide variety of methods and methods, such as introducing systems and going online, to improve business operations and increase efficiency, and the use of blockchain technology is one of them. In particular, cases of combinations with real estate are increasing.

For example, Zofuku Co., Ltd. (Shibuya-ku, Tokyo) operates a real estate brokerage business, as well as operates blockchain centers and sells and manages mining machines. In 2021, we will begin signing real estate brokerage services for crypto asset payments and lease contracts for stable coin payments.

The advantage is that even people living overseas can buy and sell real estate in Japan.

On the other hand, in lease contracts that pay for crypto assets, security deposits and rent are paid in dollar-denominated stable coins, USDT, etc.

Borrowers can send money 24 hours a day, the transfer fees are lower than banks, and the benefits are that payments can be confirmed on the blockchain at any time.

There are also cases where NFTs are used. NFT is a blockchain that is difficult to counterfeit or tamper with, giving digital data a unique value, and as the name suggests, its biggest feature is that it cannot be replaced.

It has been used in fields such as art, but it is now also being used in real estate investment. By converting land and properties into NFTs, you can aim for capital gains like you would with real real estate, or earn rent by renting them out to other users.

In the Metaverse, it is already possible to buy, sell, and rent land in the game, and there are even cases of real-life houses being sold as NFTs.

However, there is little information about real estate NFTs, and the legal framework has not kept pace. At the very least, real estate within the Metaverse is poorly recognized and there are not many users worldwide.

As the legal system is still immature, there is a possibility that one day it will be suddenly regulated and you will not be able to buy or sell the real estate you own. Above all, there are concerns about who will bear the effort and cost of turning real real estate into NFTs, and how well senior citizens, many of whom own real estate, will be able to understand this kind of system.

However, the real estate industry is still an analog world, and although it has become possible to conduct sales and brokerage contracts online in recent years, paper-based transactions still remain. It is difficult to check and travel when trading land far from your residence, and even more so when you are overseas.

DX is an issue for the entire industry, but as fraud and troubles are also noticeable, there is an urgent need to establish highly secure transaction methods using blockchain technology.

Particularly in Japan, as the population declines, there are calls for ways to utilize land, including vacant houses, and the use of NFTs is effective from the perspective of ensuring liquidity and security. Future developments are expected.

Where can I find promising Web3.0 related stocks?

——Web 3.0 is characterized by distributed management of data using blockchain technology. Explore related noteworthy stocks.

Web3.0 is attracting attention as a decentralized internet. Unlike the traditional Internet, where personal information is concentrated in specific companies, the Internet is characterized by its high level of transparency, which makes it easy to protect personal information. Although some networks have already migrated, full-scale adoption is still yet to come.

By the way, the Japanese government is also promoting Web 3.0, and in July 2022, the Ministry of Economy, Trade and Industry established the ``Minister's Secretariat Web 3.0 Policy Promotion Office'', a cross-ministerial organization.

Business environment divisions such as financing, taxation, and business entities (vehicles) and industry divisions such as content, sports, fashion, and art have come together, working together with related ministries and agencies such as the Digital Agency, to create a blockchain-based system. The company plans to strengthen its system for considering business environment issues related to Web 3.0.

Needless to say, Japan's digital policies are lagging behind those of other countries, but it is hoped that this will help narrow the gap even a little.

The number of listed companies involved in Web 3.0-related businesses is increasing, and these are attracting attention as Web 3.0-related stocks. Let's take a look at some examples.

▶ Isle (3854)

Additional investment in Sibira, a blockchain technology development company.

▶Aelia (3758)

In July 2022, we entered into a capital alliance with Animoca Brands in Hong Kong and focused on business development in the Web 3.0 area.

▶Mobile Factory (3912)

Opened NFT sales platform.

▶Edea (3935)

In October 2022, we entered into a capital and business alliance with NFT Arts to strengthen our NFT services.

▶ Ceres (3696)

Invested in a crypto asset sales office operated by subsidiary Mercury

▶Nextware (4814)

Participated as a project leader in a strategy development project for blockchain technology in the non-financial field commissioned by the Computer Software Association of Japan.

▶GMO Internet (9449)

Opened NFT marketplace.

In addition, the game industry related to the construction of the Metaverse platform, such as Sony Group (6758), Nintendo (7974), and Square Enix (9684), is not unrelated to Web3.0.

Although the full-scale popularization phase is yet to come, investment in Web 3.0 has begun, mainly among listed companies. There are many startups working on this business. If the company rides the wave and grows, there is a possibility of an IPO in the not-too-distant future.

As this technology is spreading worldwide, we can expect great growth. Isn't it interesting to search for stocks from this perspective?

Startup investment is booming How can individuals get started?

——There are many promising businesses among unlisted startup companies. How can I start investing?

A startup company aiming for short-term rapid growth through innovative business, sales of the business, and IPO. The number of such companies is said to be small in Japan compared to Europe and the United States, but in recent years, the environment for fostering and investing by the public and private sectors has begun to improve, and even in Japan, the number of establishments mainly by young entrepreneurs is noticeable.

There are even companies such as ``Smart News'' and ``SmartHR'' that are valued in the billions.

There are various ways to raise funds for such startups, such as borrowing, issuing bonds, and issuing stocks, among which investment from VC (venture capital) and angel investors is a major and active method.

In any case, startups lacking business capital must grow their business with funding from third parties.

In recent years, the number of ``equity investment crowdfunding'' services that solicit investment through the Internet has increased. The investment hurdle is low, such as tens of thousands of yen per unit, so even individuals can start using it. Why not invest in startups related to Web 3.0 through these methods?

A series of bank failures in the United States
What will be the impact on Web3.0 companies?

——Since the beginning of March, there have been a number of mid-sized bank failures in the United States. The US financial authorities have announced that they will "protect all depositors," but what will be the impact?

On March 11, Japan time, news broke that Silicon Valley Bank, known for lending to startup companies, had gone bankrupt. In response to this, the U.S. financial authorities are busy responding by announcing that they will protect all depositors.

Meanwhile, on the 12th, it was revealed that Signature Bank, headquartered in Manhattan, New York, had also gone bankrupt. The bank is a financial institution that does a lot of business with crypto asset-related companies, and following the failure of Silicon Valley Bank, financial authorities reportedly took measures to prevent the fallout from spreading. It also appears that your deposit is fully protected.

Prior to this, Silver Gate Capital, which like Signature Bank was actively lending to the crypto asset industry, also announced plans to liquidate, resulting in three banks going bankrupt in just one week. As a result of this situation, stock prices on the Tokyo Stock Exchange at the beginning of the week fell by more than 500 yen at one point.

The reason behind this is a series of interest rate hikes by the Federal Reserve. Startups have found it difficult to raise funds due to soaring borrowing rates, leading to an outflow of deposits from financial institutions.

What is worrisome is that these banks were lending to startups and crypto asset-related companies. As a result of this situation, there is a risk that investment and financing in these sectors will become reluctant, and that the development of Web 3.0 will slow down.

This could lead to chain bankruptcies not only of financial institutions but also of companies. We should pay close attention to these points in the future.

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