SBI, Sumitomo Real Estate Development trial blockchain solution for real estate transactions – Ledger Insights

Selling real estate requires a significant amount of paperwork. This process can be very tedious, with emails going back and forth between buyers, sellers, their agents, attorneys, financiers, and more. More importantly, if one person holds up, the other parties may not notice the delay. Therefore, blockchain can be used to share documents and data about the progress of the sales transaction process, increasing transparency. In Japan, SBI Holdings, SBI Real Estate Finance, and Sumitomo Real Estate Sales are collaborating on a blockchain-based solution called SREC.

So far, we have demonstrated SREC using R3’s Corda enterprise blockchain. Based on the success of the demo, the company plans to build a data sharing platform for the public.

Another high-profile real estate blockchain project is the UK’s Coadjute, which also uses the Corda blockchain.

Coadjute is designed for a similar purpose. Consider all documents that need to be shared for a real estate transaction, such as real estate deeds, surveys, mortgage bonds, contracts, etc.

However, with many blockchain solutions, the challenge is having enough users to use the same platform. If only a small number of companies use it, companies that adopt this solution can only use it for some transactions for which the counterparty is onboarded.

British adjutants were successful in dealing with adoption issues. In the UK, many companies provide software to estate agents. So instead of signing up directly with real estate agents, Coadjute partnered with several software platforms.

So Coadjute’s genius goes beyond just his business idea and execution. That’s a market development strategy.