Tokenized real estate

A building cannot sit on a blockchain, so tokenization usually wraps it in a company, trust or fund whose shares or debt are issued as tokens. Each token gives a fraction of the economic rights, such as rental income paid in stablecoins and a share of the sale proceeds. Smart contracts handle transfers, distributions and investor whitelists.

Supporters point to fractional access with small amounts, faster settlement, transparent ownership records and the possibility of trading property exposure around the clock. Platforms in the US, Europe and the Gulf have tokenized single-family homes, apartment blocks and commercial buildings, and a few land registries are testing blockchain records.

Liquidity is often more promise than reality, because secondary markets for these tokens are thin. Investors depend on the legal wrapper, the property manager and local law, since the token does not change who is on the land registry. Most offerings are securities requiring licences, and fees, valuation and maintenance costs still apply.