Blockchain start-up Brickblock, based in Berlin and Gibraltar, has received €5 million from venture capitalist Finch Capital to become the leading tokenization service. Tokenization is the process of mapping rights and physical objects in the form of digital tokens on a block chain, i.e. securitizing property rights digitally. Regardless of whether it is the ownership of a property, a work of art or a fund – the token digitizes the property claims. The potential is enormous, and so is the demand for tokenized assets. To learn more about the status of Brickblock and tokenization in general, we met with co-founder Jakob Drzazga for an interview.
What is the current status of cryptosoft, do you already offer tokenized real estate?
Our Smart Contracts have been reviewed and approved by ConsenSys Diligence, a market leader in cryptosoft technology. So the technology is ready, as is the front-end product. We are now in advanced negotiations with the regulatory authorities to finalize the legal cryptosoft framework. These will facilitate the transaction of the first tokenized real estate asset. We expect this to happen in the coming weeks. Once we have a regulatory-compliant legal framework, we are ready to token more than a billion US dollars worth of assets for which we have signed letters of intent.
What would it look like in practice if, as a crypto trader, I wanted to acquire real estate shares via tokens?
It’s a pretty simple process. First you need ether. (So far it is only possible to invest with ether). We recommend using MetaMask as it also acts as a crypto trader browser, which is required to access Brickblock like this: https://www.forexaktuell.com/en/crypto-trader-scam/. Then you go to our Smart-Contract platform. There you will see a list of tokenized assets you can invest in. Once you have selected one, you will see all the important information – investment brochure, financing target, estimated return, price per proof-of-asset token (PoA), etc. – and then click on the token you want to invest in. Then click on “Calculate & Invest” where you enter the amount of ether you want to invest. If you click on “Invest Now”, the ethers are sent to the smart contract of the token asset, which issues the proof-of-asset token in proportion to the amount invested. When the asset is fully financed, the PoA tokens become “active” (generating passive income derived from the profits of the underlying asset). And that’s it – now you’re a real estate investor.
Doesn’t Tokenized Real Estate make classic real estate funds superfluous?
Classic real estate funds can use Brickblock’s technology to create more reach and address new markets. We are already talking to several large real estate funds that are evaluating whether they will use Brickblock’s technology.
Which real values do you still want to tokenize?
Virtually any financial asset class that could benefit from faster settlement times, lower fees, global access, shared ownership models and improved liquidity. Soon we will begin the process of tokenising the first ETFs (Exchange Traded Funds). The tokenisation process will extend to heavy machinery and solar projects.