Singapore-based REIDAO platform that digitizes real estate ownerships on blockchain technology, will use DigixGlobal, which mints a gold-backed token (DGX) on the Ethereum blockchain, as part of its fundraising to create digital assets tied to real estate, IBTimes reported.
REIDAO said that it will start fundraising later this year and will allow participants to invest in property. DGX tokens were designed as a digital stablecoin that can be used to anchor value in other types of digital asset.
“Token holders will be the legitimate owners of the said property. Any income derived from the property such as rental income will be distributed back to token holders. Because these are Ethereum-based ERC20 tokens, they are freely traded on the blockchain,” Darvin Kurniawan, CEO, and co-founder of REIDAO, stated.
Darvin also said that REIDAO platform requires a stablecoin to do the fundraising, in order to protect and safeguard against extreme cryptocurrency fluctuations that take place during the fundraising period.
Digix and REIDAO are part of SGInnovate, a new Singapore government-owned organization to support science and deep technology startups. Also, REIDAO is affiliated with NUS Enterprise, the entrepreneurial arm of the National University of Singapore, through its Lean Launchpad Programme.
“We are happy to be able to support REIDAO in their fundraising effort for the properties. DGX was designed and built for that – for other decentralized applications to use it in their processes whenever a relatively stable value is desired,” Kai Cheng Chng, Digix's CEO, said.
