The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. Consequently, asset managers also need to expand their range of services and solutions.ĮY | Assurance | Consulting | Strategy and Transactions | TaxĮY is a global leader in assurance, consulting, strategy and transactions, and tax services. The transformation of real assets into digital assets is becoming an increasingly discussed topic in traditional markets. Furthermore, several exchange sites are trying to launch their own trading platforms for digital assets. Stock exchanges already benefit from the associated advantages for settlement and clearing. Potential future fields of application for tokenizationīlockchain technology is applied more and more in the European financial sector. Due to legal regulations, "tokens" can currently only be traded on the SDX in a fully regulated environment based on the DLT. To date, the SIX Digital Exchange (SDX) is the first FINMA-certified stock exchange enabling the trading of digital assets. To be able to trade the "tokens" described, a listing on a Swiss stock exchange is required. Thanks to this legal change and the associated regulation, distributed ledger technology (DLT) based trading systems are supported legally. Furthermore, on Jthe Federal Council approved the adaptation of federal law to developments in the technology of distributed electronic registers. On Februthe amendment to the Swiss Law of Obligations and the Uncertificated Securities Act were important steps towards creating a strong location for blockchain technologies. The legal basis created by the FINMA has been underpinned by further legislative texts. Switzerland is regarded as a pioneer in the regulation of innovative financial market technologies in international comparison. In 2018 the FINMA had already created the first legal basis for the innovative blockchain technology. Table 1 summarizes the key benefits of tokenization in the real estate industry. Tangible assets include not only real estate, but also works of art or ships, as well as intangible goods, such as licenses. Also, they can convert any tangible assets into "tokens" and make them accessible to all investor groups. "Tokens" do not only make the replacement of conventional securities by blockchain technology possible. However, due to the lack of technology those potential increases will remain unable for classical securities. They benefit from the above-mentioned potential increases. In short, "tokens" are positioned on the same level as conventional securities. The result is an increase in efficiency through corresponding financial and time savings. The notary visit, the considerable transaction costs or the land transfer tax become technically obsolete through the use of tokenization. The tokenization of real estate assets can play a significant role in the real estate industry. The importance of tokenization in the real estate industry After appropriate validation of the action, another block is generated automatically, which is attached to the existing blockchain. For example, a transaction or a transfer in the land register can be carried out without any human intervention. If a pre-defined contract condition is fulfilled, the algorithm stored in the digital contract triggers the events specified in the code. Contractual details are defined in so-called "smart contracts". The individual "tokens" represent the underlying property on asset level with all its rights and obligations. Tokenization – A complex, but future-oriented technologyīy means of tokenization based on the blockchain technology, real estate can be fragmented and then represented by digital tokens. However, tokenization makes this possible. A few years ago it was inconceivable to own fragments of a property and trade them on a daily basis without high transaction costs. The combination of blockchain and real estate shows a clear trend from the illiquid to the digital and liquid real estate investment.
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