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Why should those involved in the commercial real estate industry consider tokenization as a means to raise capital for their projects? There are many, but four major ones stand out that make the idea of tokenization on the blockchain both durable and scalable.

1) The first and most important benefit for most investors is that tokenization provides liquidity, which was previously unheard of in the realm of real estate investments. Through Security Tokens and the creation of digital assets, liquidity via a secondary market can be created to provide around-the-clock access to a global marketplace along with low barriers to investment. However, the platform performing the tokenization such as the World Token Market must be designed with the foresight of this secondary market in mind.

2) Transparency is also an important benefit. Tokenization of commercial real estate automatically and permanently records every property owner’s interest in tokenized real estate assets in immutable fashion. In addition, smart contracts can be embedded into the token with ownership, voting, and distribution rights, ensuring the utmost in transparency protection.

3) Tokenization allows the fractionalization of commercial real estate assets as well, benefiting both the investor and the project sponsor and/or developer. Real estate developers can sell percentages of equity in new or existing projects to fund development or pay down debt. This fractional ownership can be bought and sold providing investors the benefit of liquidity in high yield assets as mentioned above that they previously would not have had access to.

4) Another important benefit is the aspect of compliance. Security Token Offerings must be approved by the SEC and adherence to all applicable security laws and regulations is mandatory. With the tokenization platform of digital securities at the World Token Market, all compliance, Know Your Customer (KYC), and Anti-Money Laundering (AML) issues are all accounted for in the investor onboarding procedure, resulting in a much faster and efficient exchange in a completely compliant environment.

Because of these four major points, tokenization of assets via the blockchain is making significant inroads into the world of commercial real estate investing and development. Add to that the extra value of complete security and you have a the makings of a robust and efficient means of revolutionizing an industry. The Blockchain Trust Group believes that if you’re a commercial real estate developer or a sponsor of commercial properties, you’d be wise to become an early adopter of this technology. Find out how it’s done in detail by requesting a demo of the entire platform at the World Token Market.