Affinity between the Real Estate Industry and Web 3.0 - Utilization of Security Tokens

Starting in 2023, the government will launch the “Moving One-Stop Service,” which will allow people to submit their moving-out notification and make appointments for moving-in notification online using MyNaportal. This will simplify moving procedures.

With the digitalization of real estate and housing-related services in this way, blockchain-based real estate services have also begun. This is the use of security tokens by the real estate industry.

Need to clarify the difference between “real estate crowdfunding” and “real estate crowdfunding” where small investments are possible.

A security token is a tokenization of securities such as corporate bonds or real estate. The initial sale of these security tokens is called a STO.

In Japan, STO platforms such as ibet, operated mainly by BOOSTRY, a joint venture by Nomura Holdings, Nomura Research Institute, and SBI Holdings, and Progmat, provided by Mitsubishi UFJ Bank, are already in operation.

Progmat, for example, has conducted an STO in which trust beneficiary rights (rights to receive rent, etc.) to a logistics facility on Rokko Island in Hyogo Prefecture were tokenized and sold out on the same day for a total of 760 million yen.

There are many benefits to be gained by the real estate industry and investors by utilizing STOs. In particular, unlike actual real estate, the ability to sell small lots of less than 1 unit by tokenizing them is a major advantage.

For example, it is possible to “own 0.1 unit” of a resort facility, making it easier for small investors to enter the market.

With leading real estate companies entering the STO market one after another, it is very likely that STOs will become popular as a new investment method in 2023.

Advantages of Security Tokenization

The advantage of converting real estate into security tokens is not only that small investments become possible.

As with crypto assets, the ability to trade 24 hours a day is also a major advantage. Another advantage for investors is that they can invest in “assets that have backing”. Furthermore, it is expected to be used to grant non-monetary rewards (e.g., lodging vouchers) to token holders.



Related Articles

Okasan Securities Group Issues Publicly Offered ST Bonds to Commemorate the 100th Anniversary of Its Founding in Cooperation with Mitsubishi UFJ Trust and Banking Corporation

Osaka Digital Exchange to Launch Security Token Transactions on “START” Next Month