Japanese Real Estate Firm To Introduce A Cryptocurrency Settlement Platform For Real Estate Transactions
Not so long ago, a Japanese Stock Exchange-listed firm has developed a cryptocurrency settlement platform for real estate transactions. The company has already put the platform to test by using BTC and smart contracts for property sales and has released its findings; they got to witness a lot of benefits over the traditional methods.
The Japanese real estate company being discussed here is Ruden Holdings (TYO:1400). Ruden Holdings a short time ago announced the results of an experiment using its newly-created “virtual currency real estate settlement platform.” The firm went on to detail that the trial, which involved BTC and smart contracts, was conducted in collaboration with Blockchain Global Limited (BGL). These two companies came together back in April to build the settlement system and a “virtual registration data inquiry system.” Ruden went on to note that “For the settlement of bitcoins (BTC) used in the property sale, Bitflyer’s web service and API functions were used.”
In addition, the company added that some parts of the system, such as time stamping of the contract, used the NEM test network. Bitflyer, which is Japan’s largest crypto exchange by volume. Nonetheless, the exchange suspended the registering of new users after receiving a business improvement order from the country’s financial regulator back in June. The experiment was done by a seller listing a property to sell and a buyer would explore for one to buy. When the buyer finds one, the buyer then fills out an offer to purchase the property, which the seller confirmed.
The company mentioned that “The buyer then sent the virtual currency (bitcoin) to the Ruden company’s virtual currency account,” It went on to state “As soon as Ruden (system) confirms the remittance of the virtual currency, we will execute the contract and [convert the] virtual currency to Japanese yen. In addition, a notarized sale [and] purchase agreement is promptly shared with [the] buyer and seller.”
For buyers and sellers, the company explained that using smart contracts and crypto payments make it “possible to drastically shorten the time required” to perform each step of the process, that includes depositing money. Also, the company elaborated that “Smart contracts eliminate the need for manual work and conditions,” adding that “the time to negotiate and conclude can be shortened compared to the current work.” Furthermore, the system also reduces “trouble such as refusal” to hand over the property after payment has been made.
Finally, Ruden concluded by emphasizing “It is not only to improve the efficiency of operations but also to prevent unforeseen circumstances.”