One of the biggest use cases of the stellar blockchain is in asset tokenization, and it’s slowly taking shape. Recently, Smartlands, a blockchain-based asset tokenization platform inked a deal with Colliers, a Canadian real estate firm to explore ways of tokenizing Colliers real estate offerings. Through this move, the company stands to reap a number of benefits in the market.
The key benefit of this move is that it will help the company raise liquidity from all across the world, liquidity that can be used in expanding the business. Basically, it eases up the pressure that real estate companies face from loan financing or the complexities of listing on the stock markets. Here is what the CEO of Smartlands had to say about the deal.
“Creating liquidity for a property of any was always a main challenge for the real estate industry. Also, legacy finance institutions rule the real estate space with an iron fist and are showing very little willingness to let up the pressure, adopt new technologies and embrace the Zeitgeist. Smartlands Platform approached Colliers International with a ready technological solution for tokenizing ownership of the real-world assets in a fully compliant legal framework, which instantly solves virtually all problems of real estate industry. Colliers was perspective enough to enter the partnership immediately.”
With such challenges for the real estate industry, it’s only a matter of time before other real estate companies’ start tokenizing too, in a bid to build liquidity at low cost. For stellar investors, this is part of the growing usage of the stellar blockchain to transform businesses.
It was only a few months ago that a Silicon Valley startup announced that it could be tokenizing the stocks of tech companies like Robinhood, Coinbase and Ripple. While the concerned companies denied knowledge of this, or approve of it, it opened up the possibility of companies taking this route in the future. That’s because tokenization opens them up to a whole new world in terms of access to liquidity. This means they can expand faster and at a lower cost as compared to traditional sources of financing like doing IPOs.
For stellar (XLM), this makes stellar an even more worthwhile investment for a long-term investor. That’s because asset tokenization has the potential to become a big business. It adds to the other use cases of the stellar blockchain that are also equally strong. For instance, stellar has a use-case in the banking industry. Stellar has a partnership with IBM, one that has given it a strong footing in the cross-border payments market.
Already it has seen gains in adoption by banks in the Middle East and several other regions of the world as well. Given that IBM has a working relationship with over 90% of the world banking industry, it then follows that stellar has a strong potential for adoption in this market. This market, when combined with the potential to tokenize assets, gives stellar a good chance to grow, going into the long-run.
In the day, stellar (XLM) has been trading in a range between $0.241 and $0.244. This is linked to the low volumes in the market that have remained consistently low in the last one week. However, even in this low volumes environment, stellar (XLM) is one of the few cryptos that have held their value. As volumes return to the market, stellar could outperform the market.