With real estate arguably being the most valuable asset category for centuries, it’s just a matter of time before tokenization of real estate assets becomes completely mainstream. It’s going to happen. Now with the advent of a multi-trillion dollar marketplace to provide liquidity to Security Token Offerings, the floodgates of economic development and opportunity are open for business! And because the entire platform is secured using blockchain technology as its backbone, all transactions will be immutable and safe with no middlemen or intermediaries required throughout.
What’s great about tokenization of real estate is that it allows owners of properties to sell off a percentage of their digital token ownership to anyone anywhere around the globe (hence, the WORLD Token Market!). The idea that you can divide physical assets and property ownership into fractions was previously unthinkable. The direct peer-to-peer basis of the entire transaction makes is what makes this form of crowdfunding so powerful. Plus, because blockchain is tamper-proof, ownership of land records cannot be manipulated through any type of fraud. And because many third parties are not involved in the process, the executive speed from beginning to end of a transaction is that much faster.
With the creation of “smart contracts” within these token offerings, Tokenization allows issuers to automate just about any process they wish within the Security Token itself, including voting rights, dividend distributions, and just about any other automation requirement imaginable. But as all investors lament, liquidity is of utmost importance. However, when the platform issuing the Tokens seamlessly integrates with a transfer agent, issuers can also create their own secondary market for investors to trade their tokens with absolute confidence and anti-fraud security.
Now developers have another option when they try to raise money to crowdfund their projects. Looking to construct a high rise condo development? Tokenize the offering! Looking to develop a major mixed use project? Tokenize it! Looking to capitalize on the capital gain tax deferral strategies provided by Opportunity Zones investing? Tokenize that too!
We at the Blockchain Trust Group know this isn’t just theory. Tokenization is out there happening now and real estate developers and investors are already using blockchain technology to provide liquidity for their projects. Anyone who owns real estate, sell real estate, or develop real estate better get on board now, as the early adopters are the ones who gain the most. Ask Jeff Bezos about that. Are you next? Start looking into tokenizing your real estate deals at the World Token Market and make your Security Token Offering available to everyone in the world!