Listen, I want to tell you about one really interesting thing — tokenization of real estate. This is a story where physical buildings, lands, or even individual apartments are transformed into digital tokens using the blockchain. And each token is like a piece of property. All this is done to make owning and trading real estate easier, faster and more accessible.
Previously, real estate was owned in large chunks — I bought the whole house and that's it. And now you can buy a "share" in the house, in just a few clicks. Moreover, thanks to the blockchain, all transactions are protected, transparent and require almost no intermediaries such as banks or notaries. This reduces a lot of costs and speeds up transactions.
Tokenization has already started to change the market. For example, Deloitte predicts that the volume of tokenized real estate could grow to $4 trillion by 2035! For comparison, in 2024 it was less than 0.3 trillion. The growth, of course, is frenzied.
The market will develop in several directions at once:
Tokenized loans and securitization — this will take most of the money, almost $ 2.4 trillion.
Private real estate funds — about a trillion more.
The tokens of undeveloped lands and new projects are still more modest, about 50 billion.
At the same time, the blockchain greatly helps to optimize the work of funds: issuing tokens, managing them, trading on the secondary market — everything will happen faster and easier. Some funds, such as the planned $100 million Kin Capital, generally want to be completely autonomous on the blockchain.
What's even cooler is that investors will be able to assemble super personalized real estate portfolios. Do you want to invest only in "green" buildings? Or only in commercial real estate in Europe? Now it will be real.
But, of course, there are difficulties. For example, you need to think in advance about what to do if someone stops paying their obligations. There should be transparent mechanisms for accessing real assets.
And it's not limited to real estate! Blockchain is already being actively used to accelerate and reduce the cost of securitized loans. For example, LiquidFi has reduced the reporting time for mortgage—backed securities from 55 days to 30 minutes, thanks to the Stellar blockchain.
Tokenization also helps to find financing faster for large projects such as residential complexes or data centers. For example, the Canadian $300 million T-RIZE Group project was partially tokenized to raise investments.
However, in order for all this to work at full capacity, blockchains will need to learn how to interact better with each other. And, of course, we need clear laws and reliable data protection.
In short, tokenization of real estate is something like switching from a horse—drawn carriage to an electric car in an investment. The only question now is: how quickly do you think people will really start using it en masse?
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