1.6 Immovable Properties
Tokenization of real estate provides a much-needed liquidity to an otherwise illiquid asset class. By tokenizing and fragmenting real estate assets, issuers can digitize entire onboarding and KYC processes, automate compliance, and bring liquidity to a traditionally illiquid asset class. Tokenization also reduces the involvement of middlemen and complex processes, resulting in less expensive lending for issuers.
Finally, tokenization of real estate expands the investor base, making it easier to achieve capital formation. The process of tokenization involves structuring financial instruments with legal advisors/law firms, issuing and allocating real estate-based security tokens to approved investors, and managing tokenized assets. An associated secondary market solution is available to further improve liquidity.