Miami-based HouseBit Corp (HouseBit) and Miami-based International Realty Group (IRG) has announced that HouseBit has completed the first fully digital real estate tokenization on a property in downtown Miami, using cryptographic decentralized blockchain technology.
Using a combination of its patent-pending technology and a land trust created under Florida real estate law specifically for the property, the trust issued 1,000 ownership tokens representing proportional ownership in the property and a single Occupancy non-fungible token (NFT), which provides the exclusive right to occupy the property.
All tokens for a specific property are held by a Florida land trust which is unique to the property and token holders are legal beneficiaries of the trust as per the Florida Land Trust Act. The trust is represented by a trustee, acting under the instructions contained within the trust document for the benefit of trust beneficiaries.
While land trusts have been used in Florida for decades, this is the first time it is being used for decentralized ownership and occupancy rights.
HouseBit’s Land Trusts are cryptographically secured and associated to a specific immutable blockchain smart contract while property records are maintained in a jurisdiction’s public records office, providing complete end-to-end transparency to the token’s holders.
Ownership tokens provide holders, as beneficiaries of the trust, with the same benefits as with any other land trust, including the right to proceeds generated by the property. Any disbursements are provided automatically every month in U.S. dollar-pegged coins directly to the wallet of the token holder or can be staked at the option of the holder.
Occupancy tokens provide the holder with the exclusive right to occupy the property for an indeterminate period provided the holder maintains all established monthly financial obligations as well as complies with any property rules and regulations. These financial obligations are…
