Tokenizing real estate is a cutting-edge way to raise funds using crypto, where investors exchange traditional currency or digital coins for specialized “tokens.”
In essence, tokenization transforms real estate into digital assets that are securely managed through blockchain technology. These tokens are then traded on real estate tokenization platforms.
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What to look for in a real estate tokenization platform
Tokenization simplifies and reduces the cost of buying and selling real estate by eliminating the need for intermediaries, which benefits both investors and property developers. Investors can trade tokens almost instantly and with minimal fees, similar to trading on the stock market.
For property owners, tokenization opens up opportunities to raise capital without relying on financial intermediaries who traditionally ensure project success.
Investors in tokenized real estate assets get the best of both real estate and crypto markets: they can potentially earn high returns from real estate investments, even with smaller amounts, while also enjoying liquidity akin to that offered by the stock market.
Top real estate tokenization platforms
Now, let’s take a look at five leading real estate tokenization projects in the market.
RealT
RealT allows investors worldwide to access the US real estate market through fractional ownership of tokenized properties leveraging the token issuance capacity of the Ethereum blockchain. Owners of tokens can collect weekly revenue from rent paid via a stablecoin and vote on property decisions.
Source: RealT
Each RealT property is managed by a property management company that sources tenants, collects rent, and manages repairs on behalf of RealToken owners. RealT also allows investors to leverage their tokens for extra earnings through an integrated DeFi platform.
