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The property deeds are tied to a single-purpose limited liability company (LLC), which are then tokenized.
Origin Protocol, a pioneering Web3.0 protocol with a focus on Non-Fungible Token (NFT) and Decentralized Finance (DeFi) has announced its partnership with Roofstock, a real estate investment platform.
As contained in a press release shared with Coinspeaker, Origin Protocol will help in creating an NFT marketplace for Roofstock on-Chain, the subsidiary of Roofstock that makes real estate investments accessible through its NFT tokenization solutions. The offshoot makes its real estate investments accessible through a modified ERC-721 smart contract built by Origin Protocol.
The real estate industry has a lot of inherent challenges and one of these is in the cost of closing any transaction. Notably, property owners spend as much as 10% of the total cost of their assets when selling them off, as middlemen fees are often bogus. This is besides the time and delays experienced across the board.
Roofstock onChain is looking at changing this narrative, offering an avenue whereby real estate transactions can be closed with at most 2.5% expended in transaction costs. With Origin Protocol, Roofstock onChain will look to expand the utilities of NFTs beyond their current regular use as profile pictures.
“At Origin we recognise that innovation in the non-fungible token space remains in its infancy – a prospect that exhilarates us,” says Matthew Liu, co-founder of Origin Protocol, adding that “The power of digitally verifiable ownership through NFTs has many powerful potential real-world applications. In reality, we’ve barely scratched the surface of this nascent technology’s potential. We anticipate trillions of dollars of real-world assets will be tokenized as NFTs in the next decade.”
The Operating Model of the Origin Protocol and Roofstock onChain Partnership
As described in the shared press release, the property deeds are tied to a single-purpose limited liability company (LLC), which are then tokenized.
The exchange of ownership can then be carried out onChain and acquisition can take place legitimately. After the purchase, the necessary verification and documentation can then take place to suture the legitimacy of the entire deal.
Tokenization is considered the next frontier for digital collectibles, and with the real-world offering from Roofstock as powered by Origin Protocol, more value can be created for all users on a global scale.
“Investing in real estate is often considered a cumbersome process with high fees and lengthy transaction processes. “ROC’s partnership with Origin further simplifies the process of purchasing a property. Now, anyone is able to purchase and sell a property through one of the first NFT marketplaces dedicated to tokenized real estate.”
All real estate deals will be featured on the NFT marketplace that will be created by the Origin Protocol, and prospective buyers will be able to access all the information they need to make a decision on whether to initiate a transaction or not.
Founded in 2015, Roofstock has carved out a niche for itself in the tokenization world and it has investor backing featuring Softbank Group at a $1.94 billion valuation.