Tokenization of Real Estate Asset

The global real estate market is valued at a whopping $8.5 trillion in 2017. Experts estimate that this trend will continue to remain bullish as housing is one of the important components of human survival. However, the arrival of technology such as blockchain and cryptocurrency is opening up new avenues in the archaic real estate market. Today, it is possible to market physical assets to a diverse and global audience using tokenization. Moreover, real estate tokenization makes it easier to sell large buildings, office spaces and homes by fragmenting ownership. This means that it is possible to sell one building to multiple investors without any hassle. Alternatively, this also makes it possible for individuals to invest in multiple projects and create vibrant portfolios. Finally, the documentation and record-keeping processes are secured using blockchain technology while smart-contracts help makes the transfers and transactions effortless. In the real estate market a common ...

The blockchain is revolutionizing the archaic brick and mortar business of real estate. While blockchain is being used widely to manage the legal documentation and sale records of properties, many are finding a new application for this technology. This new application refers to the method of tokenization, where physical assets are converted into digital tokens. These tokens represent a stake and grants the token holder fractional ownership in the tangible asset. Tokenization is already very popular in the art as well as the venture capital sector, but it is rapidly making headways into the real estate industry. One of the most prominent examples of real estate tokenization occurred last year when St. Regis Aspen Resort, a premium luxury hotel in the United States, raised over $18 million in a crowd sale. There have been other success stories of real estate tokenization that have managed to make property developers and sellers believe in the potential this system possesses. ...