A Japanese real estate company, Ruden Holding, which is listed on the Tokyo Stock exchange said that Bitcoin and contract-based settlements were yielding much better results than the framework that was currently being used. They have since unveiled a cryptocurrency settlement system for smoother property transactions.
The company collaborated with Blockchain Global, an Australia based company to build a “virtual registration data inquiry ledger”, known as the “Virtual Blockchain Settlement Platform.”
Ruden elaborated on some of the advantages that the blockchain based design had over the traditional ones. They were first and foremost highly cost-efficient and eliminated corrupt intermediaries. Even depositing money, which in case of property deals amounts to a significant sum, was safer and faster than the traditional way of conducting a bank wire. Processing applications were also less time consuming
The process as it turned out was also quite a simple one where an eligible seller and a willing buyer is first identified. After this, the buyer fills out an application for purchase, submits all necessary and valid documents and then proceeds to pay Ruden with a cryptocurrency of his/her choice to complete the deal.
The company elaborates:
“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.”
The smart contract which both the buyer and the seller receives on successful payment also includes a notarized purchase and sale agreement and other important documents like essential property forms, registration documents, and other government forms.
Japan’s biggest exchange by traded volume, Bitflyer’s API and web service solutions were used for bitcoin settlements, and NEM blockchain was to confirm transactions. Since June 2018, after a legal order from the country’s financial regulator, Bitflyer, which offers liquidity to crypto businesses, has stopped the addition of new members.
A Singapore based organisation has already been set up in this regard, while Ruden is also likely to do in the coming months.