On October 20th 2019, Tokyo-based Lead Real Estate announced plans to fund several real estate projects via tokenized offerings prior to the upcoming Olympic games in Japan. The company will leverage technology provider Securitize to tokenize both condominiums and hotels.
Lead Real Estate and Securitize in Japan Explained
Lead Real Estate has developed real estate in Tokyo since 2003. The company has developed and sold luxury homes, hotels, office buildings, single apartment buildings, and Ryokans.
Now, the company is teaming up with Securitize to leverage the benefits of tokenization prior to an anticipated real estate boom ahead of the 2020 Olympic games.
Security tokens will be issued through the Securitize platform to represent fractional ownership in properties located in Ginza, Shinjuku, Shibuya, Ebisu, Shinagawa, and Meguro.
According to Lead Real Estate,
“The fluctuating real estate market in Japan (yields in urban areas were 3-10%) and the negative interest rate, a Japanese political measure, maximized the appeal of Japanese real estate with the 2020 Olympics games coming around the corner.”
San Francisco-based Securitize has provided the technology for the tokenization of more than ten assets. The firm has raised over $30 million in funding and is now an SEC-registered transfer agent.
In addition to real estate, security tokens have been implemented in regulated, real-world assets to include investment funds, equity, and even fine art.
The nascent industry has seen over 64 successful Security Token Offerings (STOs) which reportedly raised nearly $1 billion to date.
What do you think about Land Real Estate leveraging Securitize to tokenize real estate developments in Japan? We want to know what you think in the comments section below.
Image courtesy of World Atlas.