LIFULL And Securitize Create a Blockchain-powered Solution for Japan’s Real Estate Problems
The Tokyo-based LIFULL has teamed up with Securitize, a compliance platform for token issuers, to address Japanese real estate problems. The collaboration employs a blockchain-powered solution that tackles the large number of vacant homes in the Japanese countryside.
LIFULL and Securitize Collab Presents Great Promise
Thanks to the partnership, the two companies have successfully developed a new real estate digital security issuance system in Japan. The piloting stages of this new system have given great promise. The blockchain and digital securities are more effective than traditional methods for the Japanese real estate fund according to an announcement.
LIFULL launched the project as a partnership, specifically with BUIDL which is a subsidiary of Securitize. The target is to revitalize the many abandoned homes, more so in rural Japan. The CEO and Co-founder of Securitize, Carlos Domingo, has expressed enthusiasm for his company’s new partnership. According to him, it offers a great start for both companies as they collaborate to modernize the Japanese real estate market.
The Challenge Ahead
About 13.6% of all property lies abandoned, more so in the rural areas of Japan. A massive urbanization trend in the country is the main culprit for this situation. With jobs and schools being largely accessible in the large cities only, families are obliged to relocate from the countryside. Due to a low demand, many are forced to abandon their properties, leaving them open for any interested party.
Addressing this, LIFULL expresses how vital it is to renovate and conserve the residences for other uses. Such a step goes a long way in maintaining and at times improving the value of real estate. Acknowledging the difficulty in doing so, LIFULL is driving a bid to regionally revitalize all real estate through crowdfunding as a solution.