Real Estate Tokenization is the process of digitizing a property to make shared ownership more efficient and to enhance liquidity for investors. The Real Estate asset is represented digitally in the form of a token which is linked to a blockchain.
The tokens can be traded on secondary markets on a global scale and tasks such as the payment of dividends and interests are automated.
When it comes to Real Estate, a variety of assets can be tokenized, such as:
Tokenized Real Estate can be traded on global secondary markets 24/7, which drastically enhances liquidity for investors.
It allows funds to be raised on a global scale and the digital shares can be traded without any geographical restrictions.
It makes shared ownership in Real Estate more efficient, as tasks can be automated, such as the payment of interest and dividends.
Tokenization enables the democratization of Real Estate investment, as it allows property ownership to be fractionated easily.