https://t.co/KPqQJUIx5o. South Korean Co-Working Space Operator SparkPlus Turns to Blockchain. pic.twitter.com/kK0TPhiRAa — Skrumble Network (@SkrumbleNetwork) December 17, 2019
On December 17, it has been reported by The Investor that the partnership will aim to innovate the city’s sharing economy by means of a decentralized platform that reduces the barriers to enter the real estate market by promoting collective and indirect fundraising.
According to the report, SparkPlus plans to open co-working centers at properties listed on Kasa Korea’s blockchain platform. However, Kasa Korea’s platform has been designed for the tokenization of real estate beneficiary securities in the form of issuing digital asset-backed securities that have real estate as their collateral.
Mok Jin-gun, the CEO of SparkPlus, said:
“With our experience in operating coworking offices, we will work hard to increase the value of the assets that are on Kasa Korea’s platform through this partnership. We will work together to provide more business buildings, which is attractive to individual investors on the platform.”
Kasa Korea was designated an innovative financial services business by Financial Services Commission, the South Korea’s securities regulator, this April.
In addition to the new partnership, SparkPlus has recently raised 30 billion won ($25.3 million) in a Series B funding round by bringing the total funds, which raised since its fall 2016 launch to 60 billion won ($51.5 million).
In the meantime, the company runs 12 co-working centers across Seoul, eight of which are located in the affluent districts of Gagnam and Gwanghwamun.
However, blockchain has been gaining increasing traction in the commercial real estate sector, with investors coming to recognize the added value, liquidity and innovation that tokenization can bring to managing property rights and trading diverse investment vehicles in the industry.
Thus, this has been noted by Tyler and Cameron Winklevoss, the Founders of Gemini, the cryptocurrency trading platform, who pointed to the improved liquidity tokenized securities, last year, can bring to the real estate sector in particular.