What we’re about
Real estate tokenization is the process of representing ownership or economic rights in a real estate property using digital tokens on a blockchain. These tokens can represent fractional ownership, allowing investors to own a portion of a property and its associated income streams. This approach aims to increase liquidity, transparency, and accessibility in real estate investment.
- What it is:
Real estate tokenization converts real estate assets into digital tokens on a blockchain, similar to how a stock represents ownership in a company. - How it works:
The process involves creating digital tokens that represent ownership or income rights associated with a specific property. These tokens can be bought, sold, or traded on blockchain platforms, much like trading stocks. - Benefits:
- Increased Liquidity: Tokenization makes it easier to buy and sell real estate, as tokens can be traded more readily than traditional real estate.
- Fractional Ownership: Investors can own fractions of a property, making it more accessible with smaller investment amounts.
- Transparency and Security: Blockchain technology offers transparency and security in transactions and ownership records.
- Global Access: Tokenized real estate can be traded globally, expanding the potential investor pool.
- Types of Tokens:
Tokens can represent different aspects of ownership, such as:- Fractional Ownership: Representing a percentage of the property's value.
- Income Rights: Entitling the token holder to a share of the rental income or profits from the property.
- Equity or Debt: Tokens can also represent equity or debt associated with the property.
