According to Cointelegraph, the tokenization of real-world assets (RWA) is poised to transform the real estate investment sector, which is traditionally characterized by high illiquidity, numerous intermediaries, and high transaction costs. Polygon CEO Mark Boiron highlighted the potential of real estate tokenization to streamline processes by eliminating unnecessary intermediaries, thereby reducing transaction costs.
Boiron emphasized that fractional ownership and the ability to trade tokenized real estate assets on secondary markets could significantly enhance liquidity and accelerate the velocity of money. He noted that the main goal is to eliminate the liquidity discount associated with real estate, which intrinsically reduces its value. By making real estate liquid, its value could increase exponentially.
A notable example of this innovation is the Lumia Towers project in Istanbul, Turkey. This commercial real estate project, valued at $220 million, includes two skyscrapers with 300 mixed-use units and utilized Polygon's tokenization technology. Boiron stated that the future of real estate lies in on-chain solutions, even as regulators must familiarize themselves with blockchain technology and permissionless public systems before tokenized real estate becomes the norm.
In the United States, companies like Quarter are offering tokenized alternatives to traditional mortgages, aiming to improve accessibility to home ownership. To do this, they assign fractional property rights to real estate investors and potential homebuyers, allowing these rights to be sold, thus moving away from conventional mortgage financing.
In February 2025, Blocksquare introduced a real estate tokenization framework for the European Union, facilitating the assignment and transfer of participation rights on-chain. Meanwhile, in the United Arab Emirates (UAE), the tokenization of real estate assets is gaining traction in one of the most dynamic real estate markets in the world. Scott Thiel, founder and CEO of Tokinvest, noted that real estate developers in the UAE are increasingly turning to tokenization as an alternative to traditional financing structures.
Furthermore, the stablecoin issuer Tether partnered with the real estate platform Reelly Tech in February 2025 to promote the use of USDt (USDT) in real estate transactions in the UAE. This collaboration highlights the growing integration of blockchain technology in the real estate sector, signaling a shift towards more innovative and efficient investment models.