{"id":308,"date":"2024-12-30T22:15:00","date_gmt":"2024-12-30T22:15:00","guid":{"rendered":"https:\/\/deepocean.house\/?p=308"},"modified":"2025-06-03T08:28:44","modified_gmt":"2025-06-03T08:28:44","slug":"tokenizacja-w-zurychu","status":"publish","type":"post","link":"https:\/\/deepocean.house\/en\/tokenizacja-w-zurychu\/","title":{"rendered":"Tokenization in Zurich"},"content":{"rendered":"
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t\t
<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Tokenization in Zurich<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Home<\/a><\/span><\/span><\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\"\"<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Tokenized property at Bahnhofstrasse 52 in Zurich \u2013 detailed information.<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

(Swatch Store on Bahnhofstrasse Street in Zurich, Switzerland Editorial Photography \u2013 Image of brand, stone: 145136457) The building at Bahnhofstrasse 52 in Zurich, which houses a Swatch store, among other things. In 2020, it became the subject of the largest tokenized real estate transaction in the world at the time (A $134 Million Building in Zurich Has Sold Via Cryptocurrency | Architectural Digest).<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t
\n\t\t\t\t\t

Blockchain used for tokenization.<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

The tokenization of this property was carried out on the Ethereum blockchain. BrickMark, the company responsible for the transaction, created its own tokens as digital securities (security tokens) operating in the ERC-20 standard on the Ethereum blockchain ($134M Zurich Real Estate Sold with 20% of Price Paid with Security Tokens \u2013 Tokenist) (BrickMark AG: BrickMark signs purchase agreement for the largest ever real estate transaction paid in tokens of a total volume of over CHF 130 million \u2013 2020-01-15 | MarketScreener). The use of smart contracts on Ethereum made it possible to define the specific rights and entitlements of token holders (including claims to rents and participation in the value of the property) in a transparent and automatic way (BrickMark AG: BrickMark signs purchase agreement for the largest ever real estate transaction paid in tokens of a total volume of over CHF 130 million \u2013 2020-01-15 | MarketScreener).<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t
\n\t\t\t\t\t

Number of tokens issued<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

The number of tokens issued (BrickMark Tokens) representing this property has not been explicitly disclosed to the public. It is known that the tokens corresponded to a total of 100% of the economic rights to the property at Bahnhofstrasse 52, with approximately 20% of the tokens going to the seller as part of the payment for the building (Chrysler Building Owner Sells Stake in Zurich Property for ERC-20 Tokens and Cash). BrickMark has announced that it will issue additional tokens linked to further properties as part of further investments so that new investors can participate in the venture without diluting the shares of current token holders (Chrysler Building Owner Sells Stake in Zurich Property for ERC-20 Tokens and Cash). This means that the initial token issuance corresponded to the value of this one property, and subsequent issuances will increase the overall token pool in proportion to the added assets. (At the time of the transaction, the tokens were in the hands of only a few entities \u2013 mainly BrickMark and the seller, RFR Holding (Chrysler Building Owner Sells Stake in Zurich Property for ERC-20 Tokens and Cash)).<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t
\n\t\t\t\t\t

Name and nature of the tokens<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

The issued tokens are called BrickMark Tokens (BMT for short). They are security tokens \u2013 in fact, tokenized perpetual bonds secured by the income and value of the real estate ($134M Zurich Real Estate Sold with 20% of Price Paid with Security Tokens \u2013 Tokenist) (Microsoft Word \u2013 Case Study_Brickmark Final Version_20210127). Each BMT token represents a share in a specially issued bond that is linked to BrickMark's real estate portfolio (initially, the portfolio only included the building at Bahnhofstrasse 52) (Microsoft Word \u2013 Case Study_Brickmark Final Version_20210127). This structure gives token holders rights similar to shareholding rights: guaranteeing them 97.5% of the rental income (minus a 2.5% operating fee) and 97.5% of the increase in the capital value of the property, in proportion to the number of tokens held (Microsoft Word \u2013 Case Study_Brickmark Final Version_20210127) (Microsoft Word \u2013 Case Study_Brickmark Final Version_20210127). BMT tokens also grant voting rights in portfolio decisions, making them more like ownership shares than traditional bonds (Microsoft Word \u2013 Case Study_Brickmark Final Version_20210127).<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t
\n\t\t\t\t\t

Amount and value of token sales<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

he value of the tokens used in the transaction amounted to approximately 20% of the purchase price of the property, which amounted to CHF 130 million (approx. USD 134 million) (A $134 Million Building in Zurich Has Sold Via Cryptocurrency | Architectural Digest). This means that BrickMark tokens worth around 26 million CHF were transferred to the seller (RFR Holding) as part of the payment for the building. Press sources emphasize that RFR agreed to accept \u201ctens of millions of dollars\u201d in the form of these tokens (A $134 Million Building in Zurich Has Sold Via Cryptocurrency | Architectural Digest). The rest of the payment (approx. 80% of the price) was made in the traditional (cash) form (Zurich's Swankest Shopping Strip Clocks $153-Million Real Estate Deal Using Digital Tokens \u2013 The Daily Hodl) ( Blockchain-based real estate firm makes token-based purchase ). The transaction, which was finalized in January 2020, was the first on such a scale in which part of the payment for the property was made using blockchain tokens (A $134 Million Building in Zurich Has Sold Via Cryptocurrency | Architectural Digest). BrickMark also announced its intention to raise an additional more than EUR 50 million from institutional investors through the issuance of further tokens to finance further property acquisitions for its portfolio (Brickmark buys property on Bahnhofstrasse with tokens \u2013 IMMOBILIEN Business). (It is worth noting that 80% of the shares in the building were transferred to BrickMark, with the seller retaining 20% \u2013 the latter secured by the tokens received (BrickMark AG: BrickMark signs purchase agreement for the largest ever real estate transaction paid in tokens of a total volume of over CHF 130 million \u2013 2020-01-15 | MarketScreener)).<\/p>

Sources<\/b><\/p>