What is Real Estate Tokenization?
Blockchain technology is placing its shade in almost every industries. Well, real estate is not an exception here. Moreover, blockchain is making a huge impact in real estate sector and it is taking the industry to next level with the concept of tokenization. This tokenization idea is thriving in the industry currently as it upholds several perks like higher liquidity, globalization access and much more.
What is Real Estate Tokenization?
Usually tokenization is referred as a process of digitizing an asset using blockchain technology.
Real Estate tokenization is nothing but converting a real estate property into digital tokens with leveraging blockchain. These tokens are technically called as “security tokens” which will represent the shares or fractional ownership of a real estate property. With getting into this tokenization process it is ease to sell the token(property) to investors to raise fund rather than waiting for a prolonged period.
How Issuers and Investors Can Benefit from Real Estate Tokenization?
Without doubt, tokenization has the ability to revolutionize the global real estate market. It opens up several significant advantages for both issuers and investors. Also this concept draws a way and motivates large number of investors to enter into this market.
Go through some of the biggest perks that investors and issuers can gain by tokenization.
1. Tokenization has better liquidity which is considered as a chief advantage. This works for even billions of dollars of equity investment.
2. Once transaction is confirmed, it is immutable. This helps the investors to ensure that no one can falsified the information about transactions.
3. It is dividable and so it can be divided into smaller parts which results in lower cost of investment. Due to this, small investors can also have a chance to make investment in the market.
4. There will be greater transparency as this concept relies on blockchain. If any token goes under transaction, every participants will be aware of the process and also the investors can track the token’s history, price whenever required.
5. Another major benefit for this tokenization is it is accessible globally. Anyone from any part of the globe can invest, they don’t need to bother about countries or boundaries.
Who is Industry Best for Real Estate Tokenization?
Being a reputed token development company, Security tokenizer shines best in developing asset backed tokens for real estate industry. After undergoing complete research, analyzation, auditing and legal compliance, they create real estate tokens which will aid you to raise funds.
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