Alternative investment firm Colchis Capital will utilize Bison Trails’ Provenance blockchain to enhance its real estate asset management services, demonstrating yet another promising use case for distributed ledger technology.
Through the partnership, Bison Trails will provide the San Francisco-based Colchis Capital with node infrastructure that can be used to enhance its investment strategies, the companies announced Tuesday. Provenance is said to bring more efficiency and transparency to real estate investment management, which forms the basis of Colchis’ business model.
The investment manager is also developing its own technology stack to provide interoperability with Provenance. The technologies will work together to provide investors with real-time reporting on cash flows and yields without the associated costs of generating large data streams. The partnership also paves the way fro Colchis to begin exploring asset tokenization in the future.
As Cointelegraph previously reported, Bison Trails launched its Provenance blockchain in May of this year. Shortly after the launch, parent company Figure Technologies announced the conclusion of a $200 million Series D financing round.
Bison Trails was acquired by Coinbase for an undisclosed amount in January 2021.
Blockchain technology has been touted as a potential solution to many of the challenges impacting the real estate industry — challenges related to trust, transparency, contract processes and cost. The technology is also being put forward as a way to democratize real estate ownership in an industry that has become increasingly restrictive to the general population.
Real estate tokenization has been talked about for years but has yet to emerge as a prominent use case for blockchain technology. That could change over the next five years as small fragments of the global real estate market begin tapping into blockchain solutions London-based consultancy Moore Global recently provided a conservative forecast of how real estate tokenization could hit $1.4 trillion in the next few years.