Real Estate Tokenization

Real estate tokenization creates a new business model that represents the convergence of real estate investing and decentralized finance. Simply put, tokenization is the process of creating a virtual token to represent ownership of an underlying real estate asset. For example it could represent the ownership of room nights and the income that is derived from the sale of those room nights.

Tokenization Shifts The Paradigm

The main advantage of tokenization is flexibility: a token could represent ownership of the underlying real asset, an equity interest in a legal entity that owns that asset, an interest in a debt secured by the asset, a right to share in profits arising from the use of the asset, and more.

Ownership of these tokens, replaces dealing with regular real estate ownership in an outdated manner using paper documents. These tokens can be transacted digitally. Tokenization helps asset owners raise capital more efficiently and gives investors unprecedented access to private real estate investments, transparency, and liquidity.