Ruden Holding, a Japanese real estate company which is listed on the Tokyo Stock Exchange, announced the findings from its newly launched ‘virtual currency real estate settlement portfolio’.
According to the Japanese real estate company, it conducted a trial where it used BTC and smart contracts in a collaborative effort with Blockchain Global Limited (GBL). Both Ruden Holdings and Blockchain Global Limited led a joint effort in April in order to create a settlement mechanism along with a ‘virtual registration data inquiry system’. Ruden Holdings stated:
“For the settlement of bitcoins (BTC) used in the property sale, Bitflyer’s web service and API functions were used.”
Functions such as time stamping a contract were completed using the NEM test network. Bitflyer, Japan’s largest crypto exchange by volume, was required to stop registering any more users by Japan’s financial regulator owing to a business improvement order.
Ruden Holdings initiated its experiment with a seller having listed a property to be sold and a buyer then filled out an offer to purchase the property which was then confirmed by the seller. Ruden elaborated on the experiment and mentions:
“As soon as Ruden (system) confirms the remittance of the virtual currency, we will execute the contract and [convert the] virtual currency to Japanese yen. In addition, a notarized sale [and] purchase agreement is promptly shared with [the] buyer and seller.”
The remaining forms of documentation, such as the paperwork required for property registration, were sent in automatically to fasten the process of the sale of the property.
Ruden also added:
“Smart contracts eliminate the need for manual work and conditions,” the company detailed, adding that “the time to negotiate and conclude can be shortened compared to the current work. It is not only to improve the efficiency of operations but also to prevent unforeseen circumstances.”
Ruden Holding emphasised the advantages smart contracts and crypto payments had to offer in facilitating and drastically shortening the amount of time required to complete every step of the process, including depositing money. On top of the two systems that Ruden has already worked on, it would also establish an overseas subsidiary in Singapore in order to issue its token