Blockchain affects the real estate market: the world’s first agreement on a “tokenised” residence

Blockchain affects the real estate market: the world’s first agreement on a “tokenised” residence

Reental and Nash21 have entered into a groundbreaking agreement to collect rent for “tokenized” real estate, i.e., accommodation whose value has been turned into a limited number of tokens stored in the blockchain system. By collecting rent from a Seville residential property, the agreement guarantees a profit.

This type of agreement has become one of the next steps on the part of both companies to promote and spread blockchain technologies in the contemporary real estate market. Similar practises are already being created in countries with strong markets like the United States, but Spain is also making an effort to keep up with the times.

The agreement between Reental and Nash21 will be valid untill January 2023. Reental owns this apartment on the fourth floor of a housing complex on Calle Cocina de los Ángeles in Seville. The apartment has two bedrooms, a bathroom, a living room, and a kitchen. Nash21 has acquired the rights to profit from the rental of this property through the acquisition of tokens connected to this apartment.

Nicolás Barilari, Co-Founder and Chief Executive Officer of Nash21, points out that such an agreement is a “strategic alliance” with Reental, which will help demonstrate in practise the functionality and advantages of bringing tokenisation to the market in a more extended form. Customers of both companies will benefit from safer and more flexible real estate offers in the country as a result of this agreement.

Solutions for the Spanish rental sector

Nash21 does not intend to stop with its achievements and has aspirations to transform traditional leases with smart contracts in the following years. Such assets will be able to gain value by offering the opportunity to advance rent and receive it on the first day of every month. This procedure will have the benefit of a full guarantee against non-payment, ensuring that the landlord will get paid whether the tenant pays or not.

With the lease agreement tokenisation, the following tools to work with it become available:

  • The purchase and sale of rental agreements;
  • Trading with contracts directly through the Nash21 Marketplace;
  • The possibility to collect rent by days/weeks, based on the desire of the owner;
  • No need to wait for the end of the month to receive payment;
  • Advance payment by selling all or some months’ rent beforehand;
  • Obtaining a guarantee from Nash21 in case of non-payment by the tenant.

Nash21 guarantees the performance of smart contracts. As of right now, their total value exceeds 2 million euros, and 10% of the clients who are landlords have already used the rental advance tool. 90% of the time, rent is paid to landlords on the first day of the month. Reental will keep managing the properties it owns, which are already valued at over 5 million euros together. Both companies mention the rise in consistent interest in their offerings.

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