Blockchain Solution to Address Real Estate Challenges in Japan
Securitize, a compliance platform for token issuers, has collaborated with Tokyo-based LIFULL to create a blockchain-powered solution to address the large number of vacant homes in the Japanese countryside.
The partnership has enabled the two companies to successfully develop a new real estate digital security issuance system in Japan. During the piloting, the new system proved that blockchain and digital securities are more effective for the Japanese real estate fund than the traditional methods, says the announcement.
LIFULL started the project, in collaboration with BUIDL, a subsidiary of Securitize, to revitalize the many abandoned homes in Japan. According to the CEO and Co-founder of Securitize, Carlos Domingo, his company is excited about this new partnership. He said this is a great start for both companies as they work together to modernize the Japanese real estate market.
The over 8 million abandoned homes in Japan are attributed to the massive urbanization trend in the country. Many jobs and schools are available only in the major cities of the county and families are being forced to relocate from the countryside. They abandoned their properties there and many are simply given away to any interested party.
Addressing this, LIFULL explained that it is necessary to actively promote renovation and conversion of these homes for other uses. They believe this will help in maintaining and improving the value of the real estate. However, LIFULL sees this as a difficult challenge and that is why they are promoting regional revitalization of real estate crowdfunding to solve it.
Featured image courtesy of Shutterstock. Source: Cryptopress.