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# Revolutionizing Real Estate: Tokenization Takes Center Stage

The real estate investment sector is poised for a transformative overhaul, courtesy of the tokenization of real-world assets (RWA). This innovative approach promises to dismantle traditional barriers, characterized by illiquidity, intermediaries, and exorbitant transaction costs. Polygon CEO Mark Boiron has underscored the potential of property tokenization to streamline processes, eliminating unnecessary intermediaries and reducing transaction costs.

# Unlocking Liquidity and Value

Boir on emphasizes that fractional ownership and the ability to trade tokenized real estate on secondary markets will significantly enhance liquidity and accelerate the velocity of money. The primary goal is to eliminate the illiquidity discount associated with real estate, thereby increasing its value substantially. A notable example of this innovation is the Lumia Towers project in Istanbul, Turkey, which utilized Polygon's technology for tokenization.

# Regulatory Evolution and Mainstream Adoption

While the future of real estate lies in on-chain solutions, regulatory bodies must become comfortable with blockchain technology and public permissionless systems. In the United States, companies like Quarter are pioneering tokenized alternatives to traditional debt-based home mortgages, enhancing home ownership affordability. Similarly, Blocksquare introduced a real estate tokenization framework for the European Union in February 2025.

# UAE: A Hotbed for Real Estate Tokenization

In the United Arab Emirates (UAE), real estate asset tokenization is gaining traction. Tokinvest founder and CEO Scott Thiel notes that UAE property developers are increasingly turning to tokenization as an alternative to traditional financing structures.