Blockchain is finding use cases in almost every industry on earth. Interestingly, cases of tokenization of properties over blockchain are on the rise. In this light, Dominium is launching the first property bond which interested parties will access over blockchain technology.
Dominium announced the offering via its official blog on Medium. The property platform is the newest project by Max Property Group, a Dutch Real Estate Company. As per the official statement, Dominium’s offering will be “the first tradable, automated, multi-lingual property fund in Netherlands.”
Interestingly, as Dominium launches its first property bond, it will not be the first property bond from Max Property Group (MPG). In September 2016, the Group set up a similar property bond which saw a very high rate of uptake. However, there are stark differences with this new offer.
Firstly, the 2016 property was purely manual. This is to say that, unlike the blockchain-based Dominium property bond, the former was entirely reliant on paper transactions. In contrast, the new property bond utilizes the full potential of blockchain technology. Basically, this implies that interactions are peer-to-peer.
Secondly, interested parties can access the new property bond from as little as €1,000. However, access is subject to successful compliance with the platform’s know-your-customer (KYC) procedures. Basically, this is the means by which the blockchain platform ascertains that the user is not a bad actor. In particular, KYC procedures are important towards avoiding money laundering.
Dominium Launches First Property Bond over Blockchain to Attract Investor Participation
Esther Dekker, Property Director at MPG explains that the current low entry level targets higher participation by investors. She says, “The use of blockchain technology means that investors can participate from just €1,000 as opposed to the €10,000 minimum that we had to set for the previous Dutch fund.”
Interestingly, Dominium elaborates that once the offer is fully taken up, users can begin trading the tokenized assets. Importantly, the choice of a blockchain platform this time around is due to the convenience that comes with the technology. In particular, the technology “streamlines” the processes that go into the whole exercise of investing in the property bond.
The Dominium platform runs on top of Ardor blockchain network. Interestingly, Ardor is an evolution of Nxt blockchain. In particular, users can utilize the Dominium platform for decentralization of the trades of assets and rental agreements. Further, property managers can use the platform to perform complex management tasks and even curate purchase agreements.
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