A “tokenized” apartment has been bought for ethereum (ETH) in Spain by domestic and international buyers – seemingly making it the first property in the nation to change hands in a purely crypto-funded deal.
Per El Correo Web, the apartment is located in Seville, and involved the Spanish crypto exchange Criptan and the real estate investment firm Rental IT. Using the former’s Criptan Pay platform, Rental IT said it successfully tokenized the property and bought it using funds from 32 different investors paying in ETH from Spain, Argentina and Mexico – with the original owner receiving the payment in fiat euros.
Rental IT will now proceed to rent out the apartment on the behalf of the investors, who will then receive a share of the monthly rental fee in proportion to the size of their investments.
The tokenization effort raised some USD 65,000, with investors wishing to take part in the project allowed to put up a minimum of around USD 120.
The firms did not state if they would be seeking to repeat the move with other properties in the country or elsewhere, but the co-founder of Criptan Jorge Soriano claimed that the move was a “start for small-scale investors” that would allow them “to access a sector that until now has been difficult to access if it was not in your own country.”
Soriano added that tokenization could help “cut out excess bureaucracy,” noting that “total security” was guaranteed as the transactions had been powered by blockchain technology.
He explained that the move was helping crypto move into brand new sectors.
The Rental IT CEO Eric Sánchez was quoted as stating that “payment in cryptocurrencies” was “laying the foundations for what we know will be the future,” helping “convert investment in the real estate sector into a financial product that everyone can have access to.”
Sánchez opined that in a decade’s time crypto brokers would be “selling real estate and many other assets.”