- A church in Colorado is exploring real-world asset tokenization to acquire a parish.
- The tokenization ecosystem is expanding rapidly and might hit a $16 trillion valuation by 2030.
A recent integration has taken blockchain into the religious sphere, expanding its use beyond the circular economy. Specifically, the Colorado House of Prayer, an affiliated church group network, has reportedly launched a project to purchase its main chapel using blockchain technology.
The Church’s Blockchain Journey
The church group has already tokenized the “Old Stone Church,” a historic 11,457-square-foot building, aiming to raise $2.5 million. The current owner, a local entrepreneur, bought the property in 2022 for $2.2 million. Leveraging tokenization, the Colorado House of Prayer is now trying to purchase the building for $2.55 million.
A Colorado church has made history by tokenizing its $2.5M chapel on the blockchain. This innovative move allows fractional ownership through blockchain technology, potentially paving the way for more real estate tokenization in the future. #Blockchain #RealEstate #Innovation pic.twitter.com/nOXNJUUcTf
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Crypto Comedian
LOVE YOU (@RostislavT3) August 19, 2024
To do this, the group developed a special cryptocurrency called “Stone Coin” to fund the purchase. Created by REtokens, the coin operates on the Polymesh private blockchain and is tied to a real estate token. The group utilized tokenization to split the building into digital shares, which investors can purchase.
The project’s viability, however, depends on the token’s reactive value and the flow of positive investments. The project is doing well so far, as the group has exceeded half its target. Nonetheless, it is still actively soliciting more investors to meet its target. In the future, there are plans to open up token sales to individuals outside the church, including non-parishioners.
The downside is that outsiders may gain control over the project. Pastor Blake Bush, however, is not bothered by this risk. “Let’s introduce you to Jesus,” Bush confidently replied when asked about the possibility of unwelcome groups, like Satanists, acquiring tokens.
Speaking on the birth of the initiative, Pastor Bush, said it was divinely inspired from years of communing in prayers with God. “I heard the Lord say, ‘tokenize the building,’” stated Bush, according to a Forbes report. He is adamant that the tokenization project is a mission to reclaim what he calls “God’s house.
This creative initiative permits fractional ownership through blockchain technology, opening the door for future real estate tokenization projects.
A Look Into Real Estate Tokenization
The tokenization market has grown into a multi-billion dollar sector over the years. A Global Financial Markets Association (GFMA) and Boston Consulting Group report projects that the global value of tokenized illiquid assets will reach $16 trillion by 2030.
The real estate sector is fueling the phenomenal growth in the market. Last year, Hong Kong-based Fubon Bank collaborated with Ripple to launch a real estate tokenization initiative. As mentioned in our reports, the project aims to harness the benefits of blockchain technology and crypto to enhance efficiency in property transactions and lending procedures.
Similarly, Chainlink, a leader in tokenized Real-Word Assets (RWA), announced plans to transform the real estate market with tokenization. As highlighted in our earlier article, the process involves representing real estate properties as Non-Fungible Tokens (NFT).
