Digitized Real Estate
Bitbond and Klickown have let the world know that as early as January 2020, they will be facilitating the tokenization of real estate. The pair has indicated that there will be various collaborations in the future, with this simply being a ‘jumping off’ point.
The Finer Points
The event will see the sale, and distribution, of debt instruments in the form of digital bonds, backed by German real estate.
The following points outline a few of the finer details pertaining to the opportunity.
- Issued on the Stellar blockchain
- Regulated through BaFin
- €10 minimum investment
- 4-7% yearly return
- 3-10 year term with principal payout upon maturation
- Residential Property found in Lünenburg
A Stellar Choice
An interesting note from their announcement is the decision to use the Stellar blockchain. In recent months, the digital securities sector has demonstrated a proclivity for using Stellar for their operations. The following articles are just two examples of this, demonstrating adoption both within, and beyond, the borders of Germany.
Upon announcing their upcoming project, representatives from each, Bitbond and Klickown, took the time to comment.
Radoslav Albrecht, CEO of Bitbond, stated,
“We have significantly enhanced Bitbond following our successful STO and the approval of our securities prospectus for BaFin’s first tokenized bond…We see a tremendous demand from financial service providers and issuers to digitize the bond issue process. With our technology, we enable tokenized proof of ownership of securities, while reducing the number of intermediaries required…We are very pleased to work with such an experienced team of real estate and financial professionals.”
Wladimir Huber, Executive Director of Klickown, stated,
“For example, we can do without classic components of a real estate issue such as global certificates or expensive bank deposits. Instead, we rely on transparency and flexibility. Thanks to these enormous cost savings, we are able to offer our investors higher returns. KlickOwn investors invest completely digitally and simply with us. After selecting their dream property, they are not dependent on the performance of a fund manager, as is the case with real estate funds, for example benefit like real property owners. The entire property management, ie asset management and property management, takes over KlickOwn.”
Speaking with Radoslav
We were fortunate to have recently had an exclusive article penned and published on our site by Bitbond CEO, Radoslav Albrecht.
In this article, he discussed the path travelled by Bitbond, on their way to completing the first regulated STO within the nation. By achieving this, they have essentially generated the blueprint for industry dos and don’ts – and are happy to share it.
Recently, a study was completed by industry participants, Blockstate and the Frankfurt School Blockchain Center. The focus of which was to establish the state of digital securities based on geography.
The takeaway was that Europe is leading the way, with the highest levels of industry participation and adoption. When looking at those within Europe, one country was alone at the front of the pack – Germany; the same nation which, both, BitBond and KlickOwn call home.
Launched in 2013, Bitbond maintains operations within Germany. Hard work put in by the team behind the company allowed for Bitbond to successfully complete the first regulated STO within Germany.
CEO, Radoslav Albrecht, currently oversees company operations.
Founded in 2019, KlickOwn is a young company which maintains headquarters in Hamburg, Germany. Operations maintain a focus on their goal of developing a decentralized real estate marketplace, through the integration of real world assets and blockchain technologies.
Executive Director, Wladimir Huber, currently oversees company operations.