Real estate is a valuable asset class, but it has traditionally been difficult for small investors to access.
• This is because real estate is illiquid, expensive, and requires a lot of upfront capital.
• As a result, real estate ownership has been the domain of the wealthy and institutions and limited in reach to everyone else in the global market.
Tokenization of real estate solves these problems by fractionalizing real estate assets into digital tokens.
• This makes real estate more accessible to small investors, as they can now buy and sell tokens with a small amount of capital.
• Tokens are also liquid, meaning that they can be bought and sold easily on a secondary market.
• No need for lawyers or slow land registry procedures
The process of tokenizing real estate:
1. The property owner creates a smart contract on a blockchain platform.
2. The smart contract defines the rules governing the ownership, transfer, and management of the tokens.
3. The property owner then fractionalizes the property into tokens, with each token representing a certain percentage of ownership.
4. The tokens are then sold to investors on a primary market.
5. Investors can then trade the tokens on a secondary market.
Developers can use tokenization to have complete control over the entire financial process of a real estate asset or project without relying on bank loans.
Fully fund the purchase and development of a real estate project – either for resale, rental or hybrid.
Tokens can be in one project of diversified basked of property assets in a portfolio.
New acquisitions can be funded by tokenization to add a specific portfolio or SPV.
Developer has full control of pre-determining the governance by smart contracts attached to each token the includes distributions, buy backs.
The supply of tokens can be increased or decreased to ensure stability and pegging to a certain value.
Distributions can be either in “Money” or issuance of further tokens.
Property management can be fully managed in a decentralized manner, minimizing costs and staff.
Tokens can be bought, sold and traded instantaneously without middle-men, delay or admin.
No need for lawyers or slow land registry procedures.
80%+ of Global Finance leaders are considering the Tokenization of Real world Assets
• Buying and selling real estate
• Derivatives and carbon markets
• Trading tokenized assets like stocks and bonds
The token can be used to trade, transfer ownership, make a payment lend/borrow etc via a centralized or decentralized market place
With vastly increased liquidity, the token’s value can be used as a form of Digital Currency and transacted around the world in real time 24/7/365
Investors can invest in projects for as little as £1000
Have guaranteed returns built into the governance and the smart contract gives absolute clarity.
Have the ability to trade their tokens on a secondary market at any time after certain benchmark dates in the project.
Can potentially borrow against the value of their tokens, bond or stake their tokens.
Receive yield returns and / or capital appreciation.
Diversify their investments depending on risk appetite, desired locations, property types – limitless opportunities.
Money is not at risk in the banks – it is safely safeguarded within the asset.
Can trade, buy and sell instantaneously without middle men, high costs or friction.
Tokens can be self-custody within clients own wallets, adding security and liquidity.
We have advance industry insight with clear understanding of the legal framework in multiple jurisdictions along with carefully selected partnerships to create bespoke platforms or add projects to a global tokenization network.
We can support Real Estate Developers with an end to end solution for Smart Contract Creation, Token Issuance, Security, Governance and Custody including and management of all marketing systems or we can create a bespoke system for the developer to self manage.
A full Digital Twin of the Real Estate can be created along with an end to end marketing and sale of tokens without the need for sales staff or physical viewing. The Future of Real Estate finance and ownership is tokenization and we can ensure our Partner Developers are world leaders in this realm.
