Why Is Tokenization an Ideal Solution for CRE (Commercial Real Estate)?



  • The primary market characteristics of CRE include significant upfront investments, the involvement of management costs, short term low liquidity, etc., which inhibits small-time investors from investing directly in commercial real estate property. Also, the CRE transaction and settlement process happens at a very slow pace and involves a great deal of intermediary involvement such as agents, sellers, buyers, financiers, insurers, etc. This results in redundant verification, information, and makes the process further complicated.

    Tokenization, on the other hand, eradicates all of these complexities. Blockchain-based tokenized platforms bring in more efficiency and security. It speeds up the process by directly allowing customers to engage and exchange within themselves through the blockchain platform from anywhere around the world. It eliminates the involvement from third parties, and the need for paperwork, hence assures a risk-free, hassle-free experience. These attributes make tokenization attractive to users. Let’s discuss some of the benefits further in detail - https://www.blockchainappfactory.com/blog/tokenize-commercial-real-estate-asset/