It’s basically part ownership of a building, but using blockchain/crypto (tokens) to buy your share instead of ‘real’ money.
Each token represents a fractional ownership stake in the property, which has the potential to make real estate investment more accessible to a broader range of investors.
This approach democratises property ownership by allowing individuals to invest smaller amounts rather than buying an entire property outright.
At the core of tokenisation is blockchain technology. Smart contracts—self-executing agreements coded on the blockchain—handle transactions, payouts, and compliance.
Investors can buy, sell, or trade tokens representing their share of the property on digital marketplaces, introducing liquidity to an otherwise illiquid asset class.
The benefits of tokenisation include greater accessibility for investors, global reach, and increased transparency in transactions.
However, challenges such as regulatory complexities and limited market adoption must be addressed to unlock its full potential.
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