Coldwell Banker plans to tokenize luxury real estate asset by partnering with Coinweb, a blockchain technology company, starting in Thailand.
The companies plan to release a beta product in Q3 2022 and launching in Thailand as a pilot.
Based on the success of that program, Coldwell Banker could bring the technology to its other offices around the world, “where the regulatory framework supports the project,” according to a press release.
Coldwell Banker’s tokens will be publicly tradable and retain cross-chain characteristics to maintain stability in mitigating risks of fluctuating gas fees and other scaling issues such as network speed. Once the pilot in Thailand has been proved, Coinweb will be introduced to the property group’s other territories around the world, where the regulatory framework supports the project.
Though still at its nascent stage, real-estate tokenization has been regarded as a major step in unlocking liquidity, along with increasing data transparency, automating substantial manual conveyancing and document notarization that will deliver higher efficiency and fewer errors. With an ultimate aim of reducing settlement times, hefty processing fees and providing better security.
According to Napatkan Chaiwichit, Managing Director of Coldwell Banker Thailand, “We see real-estate tokenisation as the pivotal point for next-generation wealth-management, hence our initiative in working towards this direction with Coinweb’s layer 2 blockchain infrastructure.”
She noted that the company sees opportunities with fractional investment and ownership driving the demand in both the primary and secondary markets. “The potential to explore and fully leverage blockchain technology is real and very promising. We expect real estate investment to be invigorated by allowing access for new investors to buy into yielding quality assets.”