Real estate blockchain startup Brickblock has unveiled a partnership with private wealth services provider JTC to launch its blockchain platform for cross-border property investment. The partnership’s first collaboration involves Hillview Homes, which will offer the first asset available on the platform: Birkenhead’s Holt Hill development.
Brickblock provides users with the opportunity to invest in real world assets like real estate funds with regular dividend payouts. Brickblock will be the the technical service provider for real estate investments on the new blockchain, while JTC will support select investment processes as the legal custodian of issued shares, also known as the nominee.
JTC is also responsible for holding investors’ funds in escrow and clearing eligible investors, and will provide administration services to the structure of clients’ offerings. JTC will play an integral role in Brickblock’s effort to facilitate real estate investments in a way that’s cheaper, more efficient, and more accessible than via traditional financial institutions.
The Birkenhead residential development, Holt Hill, comprises 36 apartments and 4 townhouses. Brickblock explains that investors in Hillview Homes through the blockchain portal will benefit from low fees, fast settlements, and reduced geographic restrictions . Additionally, investments facilitated by Brickblock are not restricted to long-term holds, enabling investors to trade or sell their shares at any time. JTC is a key component of the structure that allows Brickblock to create liquidity for an otherwise very illiquid asset class.
“JTC’s expertise is integral for realising the potential of blockchain technology to positively impact the real estate investment process,” said Jakob Drzazga, founder of Brickblock. “Working together with a company of JTC’s calibre will reinforce the confidence of our clients and potential investors when it comes to Brickblock’s offering.”
Under the agreement, JTC will provide administration services to investment structures on the Brickblock platform, act as the legal custodian of issued shares and be responsible for clearing eligible investors. In addition, JTC will also sit on the board of selected real estate asset holding companies for Brickblock’s clients.
Carlo Martinengo, director of Corporate Services at JTC, said that the launch of the Brickblock platform represents a highly innovative addition to the real estate investment landscape. He said: “We were delighted to be selected as partner to Brickblock for this exciting and innovative launch and look forward to continuing to support them by providing specialist guidance and ongoing administration support.”