Colliers International, Inc. will explore the tokenization of real estate on the Stellar platform through a partnership with Smartlands, a token issuer. Currently, the Stellar network is still in the initial stages of tokenization, but is seen as more promising compared to Ethereum, mostly because of the lack of gas costs for transactions.
Smartlands, based in Lithuania, is a startup choosing an alternative form of tokenization, following the general trend of backing tokens with real-world assets. Colliers corroborated the use case for tokens:
“The global financial and commercial landscape clearly shows trillions of dollars worth of real estate ripe for tokenization. We at Colliers are positive that digital entrepreneurship of the new post-ICO era of security tokens will have a significant impact on redefining wealth creation, investing, fundraising, and a host of other Internet-based commercial activities,” said Ramune Askiniene, CEO of Colliers International Advisors in Lithuania.
Smartlands believes tokenization will increase the liquidity of real estate markets by finding alternative ways to invest in real estate.
“Smartlands Platform approached Colliers International with a ready technological solution for tokenizing ownership of the real-world assets in a fully compliant legal framework, which instantly solves virtually all problems of the real estate industry. Colliers was perceptive enough to enter the partnership immediately,” said Arnoldas Nauseda, CEO of Smartlands Platform.
Smartlands will not limit its tokenization to real estate but also sees the potential to tokenize other sectors of the economy, including agricultural assets. In theory, anyone can create tokens on the Stellar platform. However, Smartlands offers a curated experience, since the creation of a token is no longer enough. The organization is fully compliant with KYC and AML requirements, ensuring that the tokens issued would be original and valuable.
Smartlands has ensured that its tokenization process is compliant with both US regulations and Eurozone regulations, as well as complying with other regional financial institutions.
The Stellar (XLM) digital asset is now seen as more promising for the creation of security tokens and tokenization, because of the unique Stellar ecosystem, which ensures a cheaper, smoother service than Ethereum (ETH). Currently, XLM trades at around $0.24, and is holding its price while other assets continue to slide.
Security tokens are becoming a new trend in the crypto space, but are yet to be created in larger numbers and compete with other types of digital assets.