How Tokenization Is Transforming This $217 Trillion Dollar Real Estate Industry

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.



Apart from simplifying the sales and documentation process, tokenization has many more underlying advantages which can dramatically change the game for the trillion-dollar real estate industry. They have been mentioned below:

  • Tokenization opens up the real estate industry to a broader audience and also makes it easier to conduct cross-border transactions.
  • Encourages investors to build diverse portfolios by buying and selling tokens on the lines of traditional stock trading.
  • Prevents the possibility of frauds as the ownership of tokens is clearly defined and all records stored on the blockchain are secure and immutable.
  • Eliminates any unnecessary, complicated paperwork as the tokens are pre-authenticated which allows for the seamless transfer of token ownership.
Blockchain App Factory is a top cryptocurrency and blockchain development company that provides end to end real estate tokenization solutions. Our team of experts comprises of the best developers, legal advisors and consultants who can help you at every step of your of the way. We provide a variety of services that range from programming smart contracts and automating KYC/AML processes to mortgaging the property and classifying the token type.

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