Fundament Group, based in Germany’s Berlin, has received the approval from the Gernan financial controls authority BaFin to issue the nation’s first tokenized bond which is backed by the German real estate.
BaFin is the Federal Financial Supervisory Authority of Germany.
This real estate bond is based on the blockchain of Ethereum and is worth 250 million euros (approximately 280 million dollars).
As this approval represents a big step forward in adoption of tokenization in German real estate, Digital Asset Live asked Achim Jedelsky, President of FIBREE, a German think tank on blockchain links with real estate, to comment:
Yes, that is quite a big news! I am happy for any activity in the blockchain and real estate space and especially if there is a link between the traditional industry and blockchain technology.
It is now interesting to see how the market will be accepting the product and if the desired volume will be collected.
As the fund is designed as ‘blind pool’ and the mentioned asset classes are not very specific, too, we don’t know what kind of real estate will be targeted which might be too undefined for some investors.
We see here an application of blockchain technology in the given regulatory environment which offers a different way of financing traditional activities.
This is no disruption but application of new technology.