Crypto Real Estate Platform by Tokyo Stock Exchange Involves Bitcoin and Smart Contracts
The Tokyo Stock Exchange has been working to expand the different ways to use cryptocurrency in their economy. A new company listed with the TSE has established the groundwork to use cryptocurrency for real estate transactions. The platform specifically has been testing out its functions with BTC, enlisting the help of smart contracts for property sales.
The company is called Ruden Holdings, and they recently released the results of their testing, which was on their new “virtual currency real estate settlement platform.” In the announcement, they said that the trial was performed with Blockchain Global Limited. The partnership started in April to develop these systems for handling settlements and any “virtual registration data inquiry.”
“For the settlement of bitcoins (BTC) used in the property sale, Bitflyer’s web service and API functions were used.”
The NEM test network is only used for a small portion of the system, like time stamping. Even though BitFlyer used to have high performance in Japan, they stopped registering new users when they received a business improvement order.
At the start of this test, there are two parties considered – the seller that listed their property and the buyer that wants to purchase one. The buyer fills out the available offer, and the seller accepts it. The company said, “The buyer then sent the virtual currency (bitcoin) to the Ruden company’s virtual currency account… As soon as Ruden (system) confirms the remittance of the virtual currency, we will execute the contract and [convert the] virtual currency to Japanese yen. In addition, a notarized sale [and] purchase agreement is promptly shared with [the] buyer and seller.” Additional forms available include property registration applications and other documents that need to be filled out for a property sale.
The company managed to find many benefits during their test that makes this system a helpful one. By using cryptocurrency as payment and smart contracts for the paperwork, Ruden Holdings manages to make the process faster for all parties, even when it comes to making a deposit. There’s also fewer complications for making the transition of the property from seller to buyer.
Ruden Holdings was clear in their efforts, saying, “It is not only to improve the efficiency of operations, but also to prevent unforeseen circumstances.” The company has been busy lately, as they were a part of the process that a subsidiary is going through in Singapore, working to issue their own token.