Securitize, one of the world’s leading issuers of digital securities, has launched a tokenized platform that aims to encourage financing of underinvested real estate in rural Japan.
According to a Securitize blog post, the crowdfunding platform was built in collaboration with Tokyo-based fintech firm LIFULL Social Funding and has just finished joint testing. Securitize CEO and co-founder Carlos Domingo called the project “very exciting” and said this was the beginning for both Securitize and LIFULL to “modernize the Japanese real estate market together.”
Despite that Japan has some of the world’s most densely populated cities, this has come at the expense of the countryside surrounding it, which has experienced significant population decline over the decades. Close to 900 cities and villages across Japan are estimated to be deserted by 2040.
A Platform Designed to Open Japan’s Rural Property Market to the World
Securitize’s platform is designed to open the rural property market to the outside world, providing much-needed funding for revitalizing and even repopulating low-and aging populations of settlements. Because there are few restrictions on foreigners purchasing property in Japan, the platform can operate with relative clarity in the regulation.
Securitize said that the crowdfunding platform that leverages ethereum-based digital securities is faster, more transparent and more compliant with regulatory requirements than comparable legacy systems. Building on a public blockchain also means investors can review and monitor the cash flow.
Securitize received a reported seven-figure sum from Japanese investment bank SBI Holdings in November to open a country office. At the time, Domingo told CoinDesk that the placement would allow his firm to begin offering the Japanese market digital securities.
After acquiring Japanese blockchain consulting firm BUILDL, Securitize became involved in the crowdfunding platform in December.
It is worth mentioning that, Bank of Japan’s (BoJ) Deputy Governor Masayoshi Amamiya said on Sunday digital currency is not needed for advanced economies like Japan, adding that the central bank digital currency (CBDC) has little advantage at the moment.