Singapore-based REIDAO has revealed that it is set to create digital assets that are backed by real estates. REIDAO is tokenising real estates on the Ethereum blockchain, increasing the availability of real estate opportunities to people who would not be able to access them previously by offering partial investments, rather than larger and more costly ones.
Darvin Kurniawan, CEO and co-founder of REIDAO, said: “Rising prices of real estate limits the ability of individual investors with limited funds to invest in any real estate, REIDAO aims to open up the market to everyone with an interest in investing in real estate. By using Ethereum based ERC20 tokens we can fractionalise real estate ownerships to smaller portions.”
COO and co-founder of REIDAO, David Chandra, noted: “Buying real estate usually involves major commitment and a certain amount of financial capacity in available cash as down payment. REIDAO offers a new way to participate, allowing anyone to own a fraction of real estate with any budget.”
In using this approach, users would not be required to provide downpayments or secure loans individually; instead, multiple users would each purchase a portion of the property value – using the Ethereum blockchain to handle the join ownership in a trustless and secure manner.
REIDAO will also be building up an exchange platform where buyers and sellers can meet and transact their property tokens. One of the common problems in traditional real estate transactions is the difficulty of finding a buyer, which creates liquidity issue. With property tokens, as it is not the whole property being sold off, finding buyers for your property tokens should be much simpler.
The company has been included in SGInnovate - a new Singapore government outfit for deep technology start-up – which is creating a blockchain community consisting of various blockchain based start-ups in the country.
Kurniawan added: “We need to educate the public, we need to familiarize the people that there is this new assets class - digital assets. We also went through the Lean Launchpad Program with NUS Enterprise to know exactly what people wants. We want to democratized real estates opportunities. Everyone can participate and not just those with deep pockets. We also want our users to be able to access a wide selections of real estates globally. Geographical boundaries for opportunities is going to be irrelevant soon enough.”