DeFi
real estate in DeFi is in the hands of institutional operators
Kunal Bhasin, co-head of digital assets at KPMG Canada, said institutional operators will integrate real estate into DeFi. According to him, tokenization could change the owners of large commercial buildings.
KPMG: according to Kunal Bhasin, it will be institutional operators who will bring real estate into DeFi
In a meeting given at the Toronto Collision Conference, Kunal Bhasinco-leader of digital assets at KPMG Canada, expressed his thoughts regarding the real estate sector and Decentralized Finance (DeFi).
Bhasin stated that the real estate sector is in the hands of institutional DeFi operators. They will be the ones buying shares of high-value commercial properties as soon as opportunities present themselves.
To give a practical example, the KPMG co-leader said tokenization could allow the family office to own part of Toronto’s main shopping mall, the Eaton Centre, and other large buildings.
This would mean that new owners of large commercial buildings will be DeFi operators, instead of historical real estate and pension fund managers with significant financial resources.
Bhasin, however, emphasizes that such a situation will be possible only when the DeFi activity of institutions will be more “authorized”.
“Institutions recognize the efficiency that decentralized financial technology brings, but they want to know the participants with whom they are interacting.”
KPMG: real estate in DeFi only thanks to institutional operators and a more authorized environment
KPMG co-leader Bhasin believes that once the environment becomes more “entitled” and institutional DeFi operators are active, real estate will fully enter decentralized finance.
Actually, Bhasin predicted that this will become one of the leading institutional use cases in the cryptocurrency sector..
Well actually, in El Salvador While Bitcoin has been legal tender since 2014, real estate is already part of the country’s digital revolution.
In fact, just in April, Bitfinex Security introduced the debt token in El Salvador. These are token bonds that are used to obtain the capital needed for construction a large Hampton by Hilton hotel complex, close to the South American country’s international airport.
Specifically, the HILSV debt token aims to raise $6.25 million, with a 10% premium and a 5-year term in exchange for a minimum investment of $1,000.
The HILSV token will operate on the Bitcoin sidechain, Liquid Network, and will be traded in US dollars and the stablecoin USDT.
The situation in Spain: buying houses with Bitcoin
In February 2024 therefore, more than the tokenization of the real estate sector, it was discussed how in Spain, it is possible to buy a house with Bitcoin.
In fact, the real estate agency Spain Homes has partnered with Binance Paythe contactless payment application Binancehas allow you to buy properties in crypto.
Spain is not new to this sort of thing. A sporadic case from 2022 involved a villa in Marbella For sale by its owner at a price of 4.3 million euros, with the possibility of also paying it in Bitcoin (BTC) and Ethereum (ETH).