ETHLend announced the partnership with Brickblock to explore and promote peer-to-peer lending through blockchain. One of the features is the asset tokenization, which is used to facilitate online lending and easily transform real-world assets into collateral.
ETHLend is a blockchain-oriented company that offers a decentralized P2P lending platform based on Ethereum network. Borrowers and lenders from across the globe can connect via the system provided by ETHLend and can use digital tokens compatible with ERC-20 as collateral.
Brickblock offers a trading platform that connects real-world assets and cryptocoins into a unified system. The platform is also built on the Ethereum. The service allows cryptocurrency owners trade properties and ETFs without using fiat money.
The collaboration opens the gates for new types of collateral for ETHLend clients on the one hand and supports the use of Brickblock’s tokenized assets on the other hand. By using these kinds of tokenized collaterals, the loans will be safer and more transparent.
In December of this year, Brickblock is expected to sell the first tokenized real-estate building on the blockchain, which will be executed through the issuance of Proof of Asset (PoA) tokens. The latter will guarantee the investor’s legal ownership of the building.
Peter Schott, who recently joined Brickblock, will manage the transaction. The property to be sold represents a multi-story apartment in Berlin, Germany. At the moment, two more buildings are planned to be sold in the same way.
Though this may be the first trade involving a tokenized apartment, this is surely not the first real-estate deal using cryptocoins. So far, there were reported several real-estate trades with the help of cryptocurrencies:
- In mid-September, the US state Texas saw a complete real estate trade agreement involving Bitcoin. Kuper Sotheby's International Realty brokered the deal in which the buyer made the payment in Bitcoin.
- In mid-October, the first purchase of a property via a blockchain smart contract was carried out in Kiev. The buyer paid $60,000 in an Ethereum-based smart contract agreement.
- During the same period, a UK group of real estate developers advertised the first house in the country to be sold in Bitcoin.