A Brief Overview Of Real Estate Asset Tokenization

  • Real estate has always enjoyed the reputation of being one of the most dependable avenues of investment. Parallel to this, it has also enjoyed a dubious reputation of being one of the most illiquid assets. In essence, it is surely profitable but it is not quite easy to enjoy the fruits of that profit. Is there a possibility for real estate to retain its value but at the same time, but at the same time, enhance its liquidity? The answer lies in real estate tokenization!

    What Is Tokenization?
    Tokenization has been in vogue only in recent years when crypto fundraising started to gain prominence. Classically, the term “securitization” meant what tokenization means in today’s context. Tokenization implies the act of dividing a tangible asset into discrete representations that denote a share in the asset. These tangible representations are called tokens, and since they are backed by security, they are called security tokens.

    The key difference between traditional securities and tokens are the fact that these tokens are stored in the immutabile digital ledger called the blockchain. These tokens are tradable on alternative trading systems (ATS). Read more - https://medium.com/security-token-offering/real-estate-asset-tokenization-everything-you-need-to-know-77496aca20e2