Securitize and LIFULL Successfully Create New Real Estate Digital Security Issuance System in Japan
In testing, the new platform proved a Japanese real estate fund was more efficient, transparent, and compliant when using digital securities and blockchain technology.
TOKYO, JAPAN, March 10, 2020 — Securitize, Inc, the company modernizing capital markets by creating digital securities, which are easier to own, simpler to manage, and faster to trade, and LIFULL Co., Ltd. and LIFULL Social Funding Co., Ltd., have announced the successful creation of a funding platform using digital securities for real estate investing. The platform is intended to help promote real estate crowdfunding to revitalize vacant homes in the Japanese countryside.
The project was started by LIFULL Co., Ltd. in collaboration with BUIDL, Ltd. and LIFULL Social Funding Co., Ltd. In December 2019, Securitize Inc. acquired BUIDL and remains fully committed to continuing the development of the platform alongside LIFULL to implement the first phase of the project already concluded satisfactorily.
During the project, the companies were successful in proving that crowdfunded real estate funds using digital securities and blockchain technology were more practical and reduced operational costs when compared to a traditional structure. Specific details of the results include:
- Verification of operational cost reduction by automatic execution of security token distribution, dividend and redemption by smart contract
- Distribution of security tokens triggered by deposit data obtained from Bank API (GMO Aozora Net Bank, Ltd.)
- Using smart contracts on the blockchain to automatically execute dividends and redemptions according to the ownership ratio of security tokens
- Investors and third parties can check the operation of the above smart contract and the flow of funds and tokens in a public, tamper-resistant public chain (Ethereum mainnet)
“Our collaborative success in creating a comprehensive platform solution for crowdfunded real estate funds is very exciting, and it is a great start for Securitize and LIFULL as we work to modernize the Japanese real estate market together,” said Carlos Domingo, Securitize Inc. CEO and Co-Founder.
“We have learned a lot from the work we did with BUIDL. We will continue to work with Securitize to build a future where real estate is tokenized and everyone can trade freely,” said Tsunahiro Matsuzaka, LIFULL Co., Ltd. Project Manager.
Additional system architecture designed during the project successfully helped create a simpler user experience for holders of digital securities.
About Securitize Inc.
Securitize is modernizing capital markets by creating digital securities, which are easier to own, simpler to manage, and faster to trade. The Securitize platform and protocol provide a proven, full-stack solution for the full life-cycle of digital securities. Securitize’s innovative DS Protocol has the highest adoption rate in the industry and enables seamless, fully compliant trading across multiple markets simultaneously. Multiple Securitize powered digital securities are already trading globally on public marketplaces with many more in the pipeline. Contact: info@securitize.io or visit www.securitize.io
About LIFULL
■ LIFULL Co., Ltd.
Representative: Takashi Inoue, President
Established: March 1997
Location: 1–4–4 Kojimachi, Chiyoda-ku, Tokyo
Business: Real estate and housing information site “LIFULL HOME’S”
Website: https://LIFULL.com/
■ LIFULL Social Funding Co., Ltd.
Representative: Yusuke Takayama, President
Founded: October 2012
Location: Urbannet Kojimachi Building 7F, 1–6–2, Kojimachi, Chiyoda-ku, Tokyo
Business: Financial lending, investing, and management of “LIFULL Regional Revitalization Fund”
Type 2 financial instruments business: Kanto Local Finance Bureau №3115
Website: https://lifull-socialfunding.co.jp/
■ GMO Aozora Net Bank, Ltd.
Chairman, Representative Director: Takehito Kaneko
President, Representative Director: Takeshi Yamane
Established: February 1994
Location: Shibuya Fukuras, 1–2–3 Dogenzaka, Shibuya-ku, Tokyo
Business: Banking
Website: https://gmo-aozora.com/
