Tokenized Real Estate: Revolutionizing Investment
Tokenized Real Estate: A Revolution in Investment
The real estate investment sector, traditionally characterized by illiquidity, high transaction costs, and numerous intermediaries, is poised for a significant transformation thanks to the tokenization of real-world assets (RWAs). This is according to Polygon CEO, Mark Boiron, who spoke with Cointelegraph.
Boiron emphasizes that tokenizing properties eliminates unnecessary intermediaries, leading to reduced transaction costs. Fractional ownership and secondary market trading of tokenized real estate significantly enhance liquidity and improve the velocity of money. He stated: "The key is eliminating the illiquidity discount on real estate. All real estate is illiquid, hence the discount. Liquidity increases value."
Real-World Examples of Tokenized Real Estate
- Lumia Towers: This $220 million commercial development in Istanbul utilized Polygon's technology for tokenization.
- Quarter (US): Offers tokenized alternatives to traditional mortgages, promoting wider homeownership.
- Blocksquare (EU): Launched a compliant framework for on-chain assignment and transfer of equity rights in real estate.
- UAE Market: Experiencing a surge in interest, with developers actively seeking tokenization as an alternative financing method. Partnerships like Tether and Reelly Tech further expand USDT's use in UAE real estate transactions.
Boiron envisions a future where real estate transactions are primarily on-chain. However, widespread adoption hinges on regulators' acceptance of blockchain technology and public permissionless systems.
Codeum: Securing the Future of Blockchain Real Estate
As the real estate sector embraces blockchain technology, securing smart contracts and ensuring robust tokenomics are crucial. Codeum offers comprehensive services to support this transition, including:
- Smart contract audits
- KYC verification
- Custom smart contract and DApp development
- Tokenomics and security consultation
- Partnerships with launchpads and crypto agencies
The future of real estate is being written on the blockchain, and Codeum is here to ensure its security and success.
