Tokenized real estate is a relatively new concept that has gained popularity in recent years, as it allows individuals to invest in and own a small fraction of a specific property using blockchain technology. Here are 7 tokenized real estate platforms that you should know about:
How does real estate tokenization work?
First, let’s take a look at how real estate tokenization works.
Real estate tokenization is the process of fractionalizing real property into tokens stored on a decentralized database.
Blockchain technology is used to create decentralized databases, also known as digital ledgers, which store information.
Real estate tokens are captured on these distributed ledgers and validated by the blockchain network. This ensures that the ledger of transactions is accurate, up-to-date, and accessible to all network participants.
Real estate tokens are similar to non-fungible tokens (NFTs), as they are both units of data stored on a blockchain that can be bought and sold.
However, real estate tokens are typically tied to the value of a physical asset, such as a piece of real estate.
Real estate tokens can represent various things
- Ownership of part of a real property
- Ownership of the entire real property
- Part of the income from the property
- An equity interest in an entity that controls real property
- An interest in a debt secured by real property, or
- A right to share in the profits generated by real property
The tokenization of real estate is as such an industry that is both little explored and has platforms approaching the tokenization process with different methods. Which project captures the market share and adopts the best tokenization approach is up for grabs. Here are 7 projects that are doing just that:
Tokenized Real Estate Platforms
RealT is a platform that allows users to purchase fractional ownership in a variety of properties located in the United States.
The properties are tokenized using Ethereum, and investors can buy and sell their tokens on the platform using either Ethereum or US dollars.
RealT also offers a rental program, allowing investors to earn passive income from their investments.
Propy is a global real estate platform that allows users to buy, sell, and rent properties using cryptocurrency.
The platform allows buyers and sellers to complete the entire transaction process online, including the transfer of funds and the signing of documents.
On Propy, you can buy and sell a home as an NFT.
Propy has processed $4bn in transactions for consumers and agents from Compass, eXp, The Agency, Redfin, KW, Remax, Realty Austin, ACME, and others.
Blockimmo is a Swiss-based platform that allows users to buy and sell real estate using cryptocurrency.
The platform utilizes blockchain technology to record and verify transactions, making the process secure and transparent.
Blockimmo also offers a tokenization service, allowing users to invest in and own a small fraction of specific properties.
REIDAO is a Singapore-based platform that allows users to invest in and own a small fraction of specific properties using Ethereum-based tokens.
The platform utilizes smart contracts to manage the ownership and distribution of profits from the properties.
REIDAO also offers a rental program, allowing investors to earn passive income from their investments.
Bricktrade is the UK’s first real estate investment platform to tokenize property, bringing investment opportunities to both crypto market participants as well as fiat investors looking to dive into the real estate market.
SolidBlock is an end-to-end platform that helps real estate developers and fund managers raise funds offering digital securities.
Current projects include tokenization projects for residential, commercial, and hospitality-based properties in the United States, Europe, and Asia.
Blocksquare is developing a leading blockchain-based real estate tokenization system.
At time of writing this post, it has $45 million of total assets and 52 properties under tokenization, across 12 countries.
Blocksquare is aiming to power 100s of platforms across the globe, connecting investors to real estate opportunities in their region.
Headquartered in Ljubljana, Slovenia (EU), their real estate tokenization protocol allows entrepreneurs can start digitizing real estate assets at a fraction of the cost, while their white-label platform offers a streamlined way to launch an investment marketplace.
Tokenized real estate platforms provide a new and innovative way for individuals to invest in and own a small fraction of specific properties. These platforms utilize blockchain technology to make the process secure and transparent, and they offer a variety of services, including tokenization and rental programs, to provide investors with the opportunity to earn passive income. An exciting growth sector, indeed.
We’d love to hear your thoughts in the comments below…
Thank you for your invaluable input. Real estate tokenization indeed requires to do a lot of homework and you just made it easier. 😃
No problem, Antreas. Thank you for stopping by. Tokenization of real estate is such an exciting growth area and these platforms are some of the ones that interested me. I’m sure some of them will go onto great things.
digishares.io would be another tokenized real estate platform to add to the list. I really like the look of Blocksquare and they seem to be doing some great work in the space. That’s my homework right there!
I haven’t come across digishares so thank you for adding it in the comments. The comment section is always a great place to discover new information to that which is presented in the article. I’m sure our readers will drop some other platforms that will be well worth deep-diving. And yes Blocksquare are doing cutting edge stuff in the tokenization of real estate space. I’ve spoken to the team on many occasions and I’m really bullish on their roadmap and goals.
Hey! Cool post. What are your thoughts on the challenges in the tokenization of real estate? Appears to be a very new area. Must be difficult for these projects. Interested to hear your thoughts on the scope of the tokenization market as a whole.
The scale of the opportunity in the tokenization of real estate is huge. There’s a lot of projections in the industry some citing the potential of $68 trillion by 2030. As with any nascent industry, the challenges are there. For me, one of the biggest is complex legal and regulatory frameworks (real estate transactions involve a complex web of legal and regulatory frameworks that must be navigated in order to successfully tokenize a property). Therefore tokenization platforms are really treading some uncharted frontiers. Kind of exciting, right? 🙂
Appreciate it Galouisse. The tokenization of real estate and the work been done by platforms in this area is moving at an incredible speed. The tokenization of real estate is not just here to stay – but will form a large part of the global GDP in a decades time.
Very happy that you shared some insights into #tokenized #realestate assets, excited to see what 2023 has instore for the whole market.
Top post from a top man. Thanks Coinesper
Thanks TSNcrypto much appreciated!