Real estate tokenization
Tokenisation of real estate allows easier access to fractional real estate investing.
First of all, what is fractional real estate investing? Fractional Real Estate Investing is the process of buying shares in a single property or a real estate fund instead of the property itself. This is a way to invest in real estate with smaller amounts of money, as you are investing in a small part of a real estate portfolio instead of taking full ownership.
The tokenisation of real estate is therefore nothing more than the process of converting real estate shares into tokens that are stored in a decentralised database. This decentralised database stores information like a digital land register, i.e. it proves ownership. This technology is commonly referred to as blockchain. As a non-fungible token (NFT), it can represent various assets, such as:
- Ownership of part of a property
- Ownership of the entire property
- An interest in a company that controls a property
- An interest in a debt secured by a property; or
- a right to a share in the profits of a property
Dentons - Article