The year started with a series of tokenization announcements in various sectors. On that occasion, a blockchain gaming platform announced its collaboration with the Labs Group to issue non-fungible tokens (NFTs) of real estate assets.
The global real estate market is valued at $ 228 trillion
According to the announcement, the blockchain real estate company will use the Enjin platform to mint and issue NFTs. People will be able to buy fractional real estate assets starting at $ 100, which is the first step in real estate-related investing.
With the global real estate market being the world’s largest asset class, valued at $ 228 trillion, Enjin believes that tokenizing the fractional share will increase liquidity.
All tokens processed on the Enjin platform go through the Ethereum blockchain. Enjin also makes it clear that it can avoid settlement periods by channeling such transactions on this network.
Commenting on the blockchain gaming company’s interest in the real estate market, Maxim Blagov, CEO of Enjin:
The real estate industry offers a product that is fundamental to our survival, which is why the market is so stable. It is only a matter of time before real estate is tokenized. Together with Labs, we can be among the first to disrupt one of the oldest markets in the world.
What specific assets do the minted tokens represent?
Only approved owners, property groups, and developers can shape NFTs. According to the announcement, such tokens represent fragments of residential units, hotel rooms or entire buildings. The NFTs can then be traded by the owners via the Labs Security Exchange.
Yuen Wong, CEO of Labs Group, commented on the matter:
We knew Enjin was the right choice when selecting a blockchain integration partner for our real estate assets. The team’s experience building technology along with their partnerships made it a breeze for us.
News.Bitcoin.com recently reported that the Swiss digital asset bank Sygnum and Fine Wine Capital AG have launched collectable premium tokens with wine support, making them the first to comply with the new blockchain rules.
What do you think of the tokenization of real estate assets? Let us know in the comments below.
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