SEOUL, Dec. 30 (UPI) -- A South Korean blockchain company and a Dubai real estate firm have announced a partnership to allow buyers to use cryptocurrency.
The agreement, announced Friday between Bloom Technology and Arms &McGregor International Realty, will allow the purchase of real estate in Dubai mainly through the use of the Locus token, the virtual money issued by Bloom.
The firms also plan to cooperate on a global real estate platform.
Bloom Technology CEO Lee Sang-youn said the company's clients will be able to save remittance charges in purchasing real estate in Dubai.
"We are facing the new era where many industries transition to digital platform integration and tech adoption at a transactional level," he said.
"And we believe that the real estate business shall be advanced with digital platform use also in a perfect marriage between fin-tech and prop-tech."
In the long run, Lee expects the blockchain-based platform to make property transactions more transparent.
Real estate transactions often involve multiple stakeholders and complicated procedures, which can lead to fraud or corruption. Blockchain has been touted as an alternative technology to replace the industry's opaque system.
Bloom has developed a new technology called Locus Chain, which it claims will speed up transactions on the blockchain to solve a decade-long problem.
The start-up recently performed a public test to show transactions processing in a fraction of a second.
Arms & McGregor, which represents many global real estate firms in the Middle East, said in a statement the firm expects the Bloom partnership to bring about 1,000 Korean real estate investors to Dubai.