Coinweb and Coldwell Banker join forces with mission to enable mainstream real estate tokenisation
A leader in distributed ledger technology and a titan of the real estate industry have teamed up to bring tokenisation of the property market closer to mainstream reality.
Development has already begun on a platform, with a product release in beta planned for Q3 2022, from the joint project between Coinweb and Coldwell Banker.
The project will see Coinweb develop and support cross-chain token issuance pertaining to both luxury residential and high-end commercial property portfolios of Coldwell Banker’s significant customer base, launching in Thailand in the first instance as a pilot.
Coinweb will issue cross-chain governance tokens that map down to the underlying asset’s income, enabling stakeholder voting rights on distribution and, furthermore, cross-chain security tokens mapping down to asset ownership. This will deliver a lower barrier to entry to a wider pool of investors seeking returns from luxury properties with higher yields. Stage two of the project will see the implementation of parallel smart contracts being executed in the Coinweb layer, streamlining compliance checks and automating aspects of corporate action management.
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.
Major step in unlocking liquidity
Though still at its nascent stage, real-estate tokenisation has been regarded as a major step in unlocking liquidity, along with increasing data transparency, automating substantial manual conveyancing and document notarisation that will deliver higher efficiency and fewer errors. With an ultimate aim of reducing settlement times, hefty processing fees and providing better security.
“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,” explained Ms Napatkan Chaiwichit, Managing Director of Coldwell Banker Thailand.
“We envisage significant opportunities arising from enabling fractional investment and ownership, driving demand in both the primary and the secondary market, which is crucial in unlocking liquidity that real estate has always been associated with, especially in the luxury property arena.
“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.”
Coinweb CEO Toby Gilbert added the real estate space remained a high-value sector yet with legacy processes, high fees and illiquidity.
“Our partnership with Coldwell Banker aims to solve these pain points,” he said.
“After Thailand, and once the project is proven, it will be introduced to the different territories where Coldwell Banker maintains a presence around the world. Our team is ready and super excited to deliver on real-world blockchain use in partnership with a global brand.”
About Coinweb…
Coinweb.io is a layer-2 cross-chain computation platform that began its journey in mid-2017. With an impressive line-up of team members and a board of advisors from the worlds of traditional technology, business and blockchain, Coinweb aims to solve some of the most critical problems that exist within distributed ledger technology today.
About Coldwell Banker…
Coldwell Banker is one of the oldest and well-established residential real estate brand that represents individuals as well as institutional property buyers and sellers alike. More than 100 years since its inception, the Coldwell Banker network is continuously recognised for its innovation and leadership across 3,000 offices in 49 countries and territories.