Blockchain technology has unparalleled potential to improve the efficiency and governance of asset management in real estate.
Currently, a lot of processes involved in real estate transactions still require manual labor, are accessed offline, or are ultimately inaccessible to a large majority of parties to a transaction.
The process is also inefficient, cumbersome, and introduces unnecessary delays. The asset management sector can certainly benefit from the performance increase provided by blockchain technology.
Blockchain Asset Management delivers flexible infrastructure for regulated financial institutions to share processes and data securely, on a need-to-know basis, without the need for manual reconciliation.
It combines a permission with powerful financial modelling language to ensure that each institution operates from a single source of truth.
Currently, Investors buy funds from their Asset Manager, Advisor or Broker, where orders are executed individually, involving significant communication with distributors, registrars, transfer agents, much of which is conducted offline.
Blockchain based ledgers provide an alternative to centralised digital asset management.
Blockchain technology allows decoupling of the basic tasks performed by centralised, e-money processors.
These tasks include:
Blockchain technology can effectively process transactions in a much faster timeframe than traditional asset management transactions.
Moreover, it does so at a much lower cost compared to current traditional solutions.
Blockchain will change the way commercial real estate assets are traded and managed while positively impacting the structure of regional property markets.
There are currently a small number of blockchain-based platforms that are supporting the sharing economy and improving the processes of housing lenders, simplifying the process of attaining, securing, and redistributing security deposits in real estate.
The sharing economy is desperate for better technology to enhance the movements functionality.
Asset management utilising blockchain technology will be able to improve the traditional methods.
A structure offering better alignment between the buyer and seller, improved ability to maximize assets values, and enhanced liquidity allowing investors the ability to control how long they participate in the growth of underlying real estate portfolios.
The information in this article is general in nature. Any advice it contains is general advice only and has been prepared without taking into account the objectives, financial situation or needs of any particular person.
The article content is not intended to be a substitute for professional advice and readers are urged to seek their own appropriate advice before making decisions.
Any reference to a particular investment is not a recommendation to buy, sell or hold the investment.