While taking an evening stroll, Alex observes as yet another old real estate property is renovated into luxury condos. Having lived in the neighborhood his entire life, he has seen it transform from a community of small homes to an area dominated by high-rises and exclusive properties.

These advances have primarily benefited high-net-worth individuals and institutional investors. Meanwhile, people like Alex have no choice but to remain on the sidelines, unable to afford the soaring property costs.

Currently, financial inequality is swiftly increasing worldwide. The rich are getting richer, while the poor are getting poorer. The financial system is structured in such a way that wealth generation is predominantly reserved for the affluent.

How Tokenization Can Democratize Wealth Creation

Consequently, the broader populace has scant opportunities to invest in high-value assets like real estate or fine art. This paradigm exacerbates wealth disparity.

According to a Statista report, the top 10% of earners in the United States possess 67 percent of the nation’s wealth. In stark contrast, the bottom 50 percent own just 2.5%.

Read more: What Are Tokenized Real-World Assets (RWA)?

Tokenization, however, could dramatically reshape the financial sector. Alex and others like him could own a piece of the properties for the first time, reshaping their community. This technology promises to democratize investment, allowing more residents to benefit financially from the growth and changes in their neighborhoods. 

In an interview with BeInCrypto, John Patrick Mullin, co-founder of MANTRA—a layer-1 blockchain dedicated to the tokenization of

Go to Source to See Full Article
Author: Harsh Notariya