Top Real Estate Tokenization Development: Expert Guide

Merehead is developing real estate tokenization platforms and has over 10 years of experience in the blockchain industry. Based on my experience, I will tell you how to launch real estate tokenization and how much it will cost. We will also consider what types of platforms exist and how they work.

In 2024, the volume of the tokenized real estate market was estimated at $3.5 billion, and by 2033 it could reach $19.4 billion. The growth rate largely depends on the adoption of blockchain technologies and crypto assets, as well as further regulation of this area, but in any case, according to forecasts, only further growth is expected. Therefore, starting our own tokenization platform, which can compete with such players as RealT, DIBS Capital, can be a financially beneficial solution. Below, we analyzed the market, examined the main nuances of such platforms, and published a general development guide: from choosing a blockchain and writing smart-contracts to the testing stage and direct launch.

What is Real Estate Tokenization?

Tokenization of real estate — this is the process of converting ownership rights of an apartment/house/land plot into tokens that are issued on a specific blockchain. In fact, each asset acts as a share in real estate. This simplifies the buying and selling process and allows customers to purchase not the entire object, but only a part of it. For example, a house can be «divided» into 10,000 shares/tokens, and an investor can purchase 1/10,000 part.



Why it is beneficial for both developers and investors:

• The entry threshold is reduced. Developers can sell an object faster in small parts to a large number of small investors. Depositors do not need to have large capital in order to start receiving passive income through further rental of apartments or an increase in asset prices. The minimum threshold varies depending on the company, country, and specific facility, but it is often — from $50 or $100;


• Transactions are more transparent and secure. The entire process is displayed and stored on the blockchain, and integrity is guaranteed by the smart-contract mechanism;


• Increased liquidity. The sale of tokens takes place quickly through various platforms. These may be specialized places (RealT, SolidBlock, Fraction), DEX (Uniswap, Curve, SushiSwap), a secondary market where P2P-transactions are possible, and sometimes even CEX. In any case, this is a faster process than the classic apartment sale;


• Simplified access to international real estate. For example, an EU citizen living in Europe can purchase tokens online that give them the right to own real estate in the United States. There is no need for personal presence, obtaining a visa, or opening an account with a crypto friendly bank;


• Simple purchase/sale procedure. Tokenization allows you to automate the process + reduces bureaucracy. For example, there is no need to go to a notary, sign a contract, register ownership, and so on;


• Reduction of financial costs. Participants do not need to pay commissions to realtors, pay for notary services and pay for other legal support. Tokenization fees also exist, but they are much lower, often ranging — from 0.5% to 2%


• Simplified tax payment system. Investors often receive income in cryptocurrencies, usually — popular stablecoins (USDC, USDT), taxes are often paid by the company that deals with tokenization, and the investor will only have to declare the process. Also, in the case of buying real estate in another country, an agreement is often applied that protects against double taxation.

Most often, popular networks are used to generate tokens — Ethereum, its second-level solution Polygon, as well as Binance Smat Chain, Tezos, Solana or Avalanche. Private blockchains, such as Corda, are sometimes used for corporate solutions. Tokens can be either interchangeable if each share of real estate is similar to the other and they can be replaced with each other, or NFT in cases where the token acts as ownership of a specific apartment. Sometimes hybrid contracts are created that contain both interchangeable and non-interchangeable tokens (for example — ERC-1155 standard). By the way, it is considered more economical in gas consumption than ERC-721, and is often used in the development of NTF marketplaces for collections with multiple copies.




The most popular standards:

• ERC-20;


• ERC-721;


• BEP-20;


• ERC-1155.

The developer company also chooses how many parts the property will be divided into, what is the minimum number of tokens an investor can purchase, sets the price for the asset, and so on. Moreover, the conditions may vary for different types of real estate (apartment, apartment buildings, commercial sector, etc.). All these nuances are spelled out in official legal documents — the Memorandum of Offer + when buying tokens, the investor signs a Subscription Agreement. Either the token issuing platform or the developer company takes over the preparation of the documentation.

How does Real Estate Tokenization Work?

Tokenization — is a multi-step process for converting real estate into a digital token on the blockchain, which will act as ownership/ shares in the object. How it happens:

1. The real estate object to be tokenized is selected: apartment, house, office, and so on. It can be both residential and commercial real estate or even a plot of land.


2. The facility is being prepared for tokenization. This includes the legal registration of the object with the creation of a legal entity/trust that owns it + a valuation is carried out (in the future, the entire price will be equal to the total value of the tokens) + all necessary documentation is prepared (White Paper, Subscription Agreement, Contract, and etc.).


3. A model is selected according to which tokenization will take place. For example, one object can be divided into shares, or 1 object = 1 token (in most cases, NFT).


4. Tokens are being developed. First, the asset standard is selected. It all depends on the blockchain + depending on the selected type — NFT or interchangeable (that is, for example, the ERC-20 or ERC-1155 standard), then a smart contract is created and transferred to the selected blockchain. The contract should specify the number of tokens, transaction mechanics, profit accruals, profitability, and coin functions (for example, voting may also be supported).


5. The token is placed on the platform and becomes available for sale. From the point of view of development, the website itself is generated at this stage, including a user interface through which investors can go through the KYC procedure, buy/sell coins, familiarize themselves with assets and their descriptions, and connect a wallet. When making transactions, the smart contract will update the owner's data.


6. Income is distributed. This happens automatically through smart contracts. The main income in this case is rent, most often payments are accrued in stablecoins.

A resale option on secondary markets may also be supported. If this is provided for, most often such transactions are concluded on various DEXs, everything is implemented through the functionality of a smart-contract automatically.

Let's look at some examples of platforms that are engaged in tokenization: RealT, BrickFi, DIBS Capital, Securitize.

RealT — this is an American company specializing in tokenization of real estate. Investors can purchase shares from apartments, houses, and development projects and receive % of the rent. The company has tokenized over 700+ properties in the USA, Panama and Colombia. Supported types of real estate — residential properties. The company's database has over 18,000 registered users, and there are 7,500+ active investors from various countries.

RealT uses interchangeable tokens — ERC-20. The main network — Ethereum, it is used to issue tokens (its advantage is high security, but the fees are high), but it also uses a tier 1 decentralized network compatible with EVM, Gnosis Chain (it has lower fees, so it is used to transfer tokens, trade and transfer rent payments). All tokens are linked to the property through LLC or SPV (their status — real-world assets backed tokens). Lease payments are made in USDC or DAI.




BrickFi — This is a platform that tokenizes lease agreements, turning them into NFTs. Owner Company: BrickFi Inc. The main sources of income for investors are rent + profit due to rising real estate prices. Protection against double taxation is provided. The platform was developed by the Merehead team. The process included the implementation of such technical nuances:

• Development of smart contracts to implement the tokenization process + purchase/sale transactions;


• Integration with Strip and Circle for secure acceptance of USD and USDC;


• Integration with Docusign for fast and convenient signing of legal documents, in particular contracts, online;


• Creation of a mechanism for automatic matching of non-interchangeable tokens;


• Creation of an intuitive interface for the website + mobile application.

Since the company chose the NFT format, it made it easy to sell lease agreements for entire apartments to investors from any country without the need for personal presence. Different types of real estate are supported: multi-room apartments, houses, studios, etc.




DIBS Capital (previously — SolidBlock) — this is an Israeli company operating in the financial and technical sector, whose main specialization is the tokenization of real estate. The target audience of the platform is real estate owners and developers + investors interested in deposits with a low entry threshold. The tokenization option for both residential and commercial real estate is supported. The company was the first to conduct a commercial real estate STO in 2018, raising over $18 million in investments. The main blockchain — Ethereum, on which coins of ERC standards are issued. The company's list of services includes:

• Direct tokenization of real estate;


• Secure storage services for all documentation and transaction history on the blockchain;


• Legal services to meet the requirements of various jurisdictions (EU, USA, etc.).

Securitize — It is a large company founded in 2017, which is engaged in the creation, management and trading of digital assets issued on the blockchain. Together with other companies, it launches platforms and real estate tokenization projects, although this is not its main profile: for example, in 2023, the company issued tokenized shares of the Mancini Partners real estate fund + participated in the tokenization of the American St. Regis Aspen Resort hotel. The company's activities are regulated by SEC + FINRA. The Ethereum blockchain is often used for the tokenization of real estate.

Types of Real Estate Tokenization

Different types of real estate can be tokenized: from residential to commercial, as well as social and infrastructural facilities. Moreover, although in most cases these processes are meant specifically tokenization of property rights, there are other more specific options, for example; tokenization of debt obligations secured by real estate, a hybrid model (the real estate object itself + debt), tokenization of rental income of real estate, etc. Let's look at the main types of real estate for which all these options are provided:

• Residential real estate: multi-room apartments, studios, private houses, apartment buildings, apartments for rent. One of the most popular options for investors, as they can easily receive passive income from renting apartments. Main target audience: private investors. The entry threshold — minimal (often from $100-200). Tokenization often takes place using interchangeable tokens for the sale of shares in apartment buildings (the most popular standard — ERC-20). Development complexity: low-medium;


• Commercial real estate: business centers, offices, warehouses, shops, hotels, coworking spaces. Main target audience: institutional investors. The entry threshold is higher than in the case of residential real estate. Passive income is generated through long-term rentals. Tokenization difficulty: medium-high, as additional legal advice is required;


• Land plots: land for building, agricultural land, investment plots, whose price may increase in the future due to an increase in the standard of living of this area. Main target audience: large private and institutional investors. There is often no passive permanent income, the profit is due to rising prices and further investments. The complexity of tokenization varies depending on the type of land plot, the simplest option — without buildings, the most difficult — construction sites, as many permits are required;


• Infrastructure/social real estate facilities: hospitals, schools, kindergartens, parking lots, and so on. The main target audience is ESG investors, private individuals — less often institutional investors in government projects. The entry threshold is low, as it is often supported by the government + there are grants. Profits are generated through subsidies/benefits from the government + rent + rising asset prices. Development complexity: high. Agreements with government agencies are required + a more complex scheme for the return of investments;


• Development projects: offices, new buildings, and so on. The main target audience: large private investors, various funds. The entry threshold is often low: from $100. But there are high minimum limits for accredited investors. The main profit — after the construction is completed + the investor can act as a lender. They are considered highly risky investments. Development complexity: high.

Depending on the type of facility, the price of the tokenization process, the timing and complexity of the project will vary. Also, different types of tokens and networks are suitable for different purposes. This issue is discussed at the initial stages with customers. The functionality and services of tokenization platforms can include all types of real estate, as well as only residential.

Real Estate Tokenization Platform Development Guide

The development of a real estate tokenization platform — a complex and multi-step process, as such sites combine a centralized part (backend logic + UI/UX + KYC and AML + audit tools + technical support services) and decentralized components (smart contracts for the issuance and transfer of tokens, income distribution, coin blocking/unfreezing + real estate tokens + ownership rights recorded in the blockchain + token burning/release mechanisms + voting mechanisms for holders, if this option is supported). The decentralized part runs on a specific selected blockchain (for example, Ethereum, BSC), while the centralized part is a classic platform/application with a server infrastructure. Let's look at the specific steps to launch such a platform.

The first step — to identify the target audience. These can be investors, developers, real estate owners. At this stage, the main strategy and types of services are also determined: tokenization of which types of real estate will be available (residential/commercial/social and infrastructural/land plots), in which countries purchase/sale is available and whether there will be legal support, what regional restrictions and regulations will apply (SEC in the USA, MiCa in the EU + widespread the option — a mandatory KYC and AML procedure). The second step — choosing the type of tokens, will also depend on this:

• NFT-model: relevant if the entire object will be tokenized, for example, an apartment. A popular option — ERC-721 (Ethereum), FA2 (Tezos), Polkadot's own unique standards based on customer requirements, etc;


• Interchangeable tokens: a convenient option if an object needs to be divided into shares. Popular standards — ERC-20 (Ethereum), FA1.2 (Tezos), SPL (Solana);


• Security tokens: necessary when the token gives the right to receive dividends, provides a share in the legal ownership / SPV (example: token = part of the shares of the company owning the property), is necessary for public attraction of investments, is used within the framework of a regulated offer. Popular standards: ERC-1400, FA2, ERC-3643.

To accurately determine not only the type, but also the standard (ERC or SPL, etc.), it is also immediately necessary to select the blockchain that will be used to generate coins. Let's look at the most popular options:

• Ethereum: the most popular network, which is most often used for tokenization. It has the most developed ecosystem: it provides access to various DeFi, frameworks, crypto wallets to providers, supports auditing, and etc. It is especially popular if security-tokens are needed. The main disadvantages are high gas fees, average transaction speed (finalizing during peak load periods will be low), and possible network overloads. For these reasons, tier 2 solutions for Ethereum, such as Polygon, are often used, in particular to increase speed and reduce fees. The main language for writing smart-contracts — Solidity, less often — Vyper;


• Tezos: another network with a focus on generating security tokens. Advantages: the FA2 standard is universal and suitable for both NFT and interchangeable tokens + lower fees than Ethereum + the option of formal verification of smart contracts is supported. Cons: a less developed ecosystem + a limited number of developers who specialize in writing smart-contracts for Tezos. Main languages — SmartPy, Michelson, Archetype;


• Avalanche: The network is highly compatible with EVM and is especially popular when working with institutional investors. ERC standard tokens can be generated. Advantages: high performance, fast finalizing. Disadvantages: there are more difficulties with legal implementation and adoption in a number of countries and a less developed ecosystem compared to Ethereum. The most frequently used language — Solidity;


• Private networks: choosing companies that value privacy as much as possible. For example, it is relevant for tokenization within closed-end funds with a limited number of potential investors. Advantages: maximum privacy + full control. Disadvantages: limited use of tokens, the need to create your own network, lack of direct access to already developed ecosystems. Solidity or Vyper languages are often used to write smart-

After choosing the blockchain and the type of tokens, can proceed to the third step — writing smart contracts. Basic contracts that need to be created:

• A token-contract that represents a share/property. It should specify the name, number of tokens, issuance, transfer mechanisms, ownership information, etc.;


• The contract that determines who has the right to own the token. It includes a list of specific users who have passed KYC, integrates with the token contract before the transfer for authentication, provides for the possibility of integration with an external KYC provider, etc.;


• A contract for making a profit and/or distributing income. It is necessary to prescribe the logic of income distribution between token holders, it is also responsible for storing funds that have not yet been distributed, and it may also provide for the option of manually withdrawing dividends, etc.;


• The object's contract. It should contain all the necessary information about the property (country, address, description, etc.), have embedded links to legal documents about the property, the address of the token contract, and have an option to update the data.

Additionally, smart contracts for voting and management may also be required if token holders receive additional rights. Another popular option — a managing smart-contract for general control of the real estate tokenization process.

In addition to the decentralized part, the architecture of the platform also includes a centralized one. So the next step — to develop centralized components:

• User interface (frontend). Through it, users will interact with the platform: explore and select real estate, buy/sell tokens, connect cryptocurrency wallets, undergo KYC/AML procedures, and so on. React is most often used in development.js, less often — Vue.js/Angular, for mobile versions — React Native/Flutter;


• A backend for describing server-side logic/application creation. It interacts with decentralized components as much as possible. It is used for tracking, transaction creation, user management, investment accounting, balances, interaction with blockchain and synchronization of events in the network, integration of external gateways (KYC, payment solutions) and so on. The most commonly used are Node.js or Python, TypeORM for databases, and Web3.js, Ethers.js (for Ethereum and all compatible networks, e.g. Polygon, Avalanche + BSC), Conseil.js (for Tezos), near-api-js (Near Protocol) for blockchain interaction, and etc.;


• They are necessary for storing user data, information about the property, activity history, KYC data, and transaction data on the blockchain. The most popular options: PostgreSQL, MongoDB, Redis;


• Hosting infrastructure. Centralized components (backend/frontend) are hosted on servers, for example, AWS, Azure, and decentralized (smart-contracts) — hosted on the blockchain;


• Integration of KYC/AML services. For international checks, IDnow/Trulioo are most often used to verify user identities — Onfido, SumSub, Shuftipro. The KYC request itself will later be launched from the frontend, and the result will be transmitted to the backend. The data itself can be stored in a decentralized part of the architecture — a smart-contract;


• Integration of crypto and fiat gateways. This includes connecting the most popular cryptocurrency wallets (both cold and hot), for example, MeteMask/Coinbase Wallet + options for direct receipt of crypto, Binance Pay/Circle API, for Fiat – SWIFT or SEPA, if licensed + PayPal/Stripe, etc.;


• The administrative panel. It allows owners to moderate objects, keep records, record transactions, and manage tokens/users. The following technologies/languages are most often used for creation: React or Vue + API for authorization (JWT and RBAC). Connecting to the backend is most often done using REST.

After development, you can proceed to the next step — testing. This includes both smart contract tests and centralized components. Types of tests for the blockchain network and smart contracts: checking the logic of functions (unit test), evaluating the interaction of several contracts, for example, tokens and revenue distribution (integration test), test simulation on a copy of the blockchain, identifying vulnerabilities and security issues. The most popular tools:

• For networks compatible with EVM: Hardhat, Truffle, Foundry, Tenderly;


• For Solana: Anchor framework with built-in tests + Solana test validator;


• Tezos: Taquito + Pytest;


• Near: near SDK sim + near workspaces.

A series of tests is also recommended for testing centralized components: unit + integration tests (evaluating the correctness of logic and execution, API operation, interaction of various modules, for example, KYC/databases), API tests, security assessment + load testing simulating a large number of simultaneous operations from many users. Technologies that are often used for testing:

• SonarQube;


• Jest;


• PyTest;


• GitHub Actions;


• Circle CI;


• Locust;


• Insomnia and etc.

User behavior scenarios on the platform are also often checked, taking into account all the steps. That is, from registration and KYC to buying a token and receiving dividends. The TestCafe/Playwright/Cypress tools can help with this.

How much does it Cost to Tokenize Real Estate?

The cost of developing a platform depends on many factors, ranging from the pricing policy of the developer company to the jurisdiction and type of real estate that will be tokenized. Let's consider the main nuances:

• Types of real estate that can be tokenized through the platform. The most budgetfriendly option, but there may be high requirements for the user interface, since the main target audience — private investors and they should easily figure out the functionality. Plus, the development of such platforms requires a minimum of legal nuances. If you also want to tokenize real estate, then the development price will be higher, as it requires the introduction of more complex models for calculating profitability/reporting/lease calculations, and so on. Infrastructural and social real estate — an even more complex option, often requiring the creation of additional types of tokens to account for grants, subsidies, and so on. Integration with government services and structures is often needed;


• The type of tokens. The simplest and most affordable option — interchangeable tokens of various popular blockchains (for example, ERC-20, BEP-20), with the help of which it is easy to divide real estate into shares, a more complex option — NFT, especially if each property — a separate NFT (for example, an apartment). It is often necessary to create an extra system for managing such assets. Hybrid models with interchangeable + NFTs are the most difficult and expensive to develop;


• Jurisdiction and legal model. Legal regulations vary from country to country, and it is also important whether you need a system for conducting AML/KYC+ procedures. Depending on the services and type of assets, you may need to obtain different licenses;


• The functionality of the platform. Important nuances: the number of smart contracts (for paying dividends, voting, etc.), the number and types of integrations (payment gateways for fiat, support for crypto wallets, KYC providers, etc.), the complexity of UI /UX design with adaptation to different target groups and branding, the need to add extra functions and sections (for example, a chatbot). The price is also strongly influenced by whether the option of reselling tokens + staking functions, integration with DeFi, etc.;


• Choosing a blockchain. Some are simpler and will be cheaper in terms of integration, generation and transactions of tokens, others — more expensive + need to decide whether additional tools are needed, for example, oracles;


• It is necessary to clearly define the potential target audience, the number of users, the load on the system, and so on. The larger the project and the more expansion options, the more expensive the development is.

Approximate prices of Merehead company: a solution for a single property — from $10,000 to $20,000, the creation of a small marketplace with limited functionality — from $30,000 to $60,000. At the same time, an average marketplace with extra options will cost $60,000 to $90,000, and a large one — $90,000 to $150,000. For more details, please contact Merehead managers.

Real Estate Tokenization Development Services

There are various ways to launch your own real estate tokenization platform. The most time—consuming is creating from scratch. Even with the involvement of a team of specialists, business analysis, design, and architecture creation (backend/frontend development + integration + creation of decentralized components + legal registration + testing) will take from 6 to 12+ months. An alternative solution, which is also offered by most development studios, is the purchase of a White Label. This is a ready-made template that will be customized and branded. What the customer chooses:

• A specific blockchain, architecture, and type of tokens (NFT/tokens of certain standards are interchangeable);


• Certain functionality: for example, support for specific crypto wallets, fiat payment systems, chatbot, asset resale options, etc.;


• UI/UX design: you can select a specific template, change colors, fonts, location of blocks, sections, and function buttons. White label also involves branding, that is, adding logos, names, and other things that make the platform individual.

Buying a White Label — a cheaper option compared to developing from scratch, and it allows you to enter the market faster: in 2-4 months (depending on the complexity of the project and the necessary additional functions). The third option — to develop on the basis of a ready-made solution. This simplifies the creation of the platform, as it uses ready-made blockchain architecture, tokenization protocols, and individual components (KYC/AML API, digital signature API, frameworks, SDK, and etc). This approach is more difficult than buying a White Label, but it provides more customization options, while it is easier than developing from scratch.

Real Estate Tokenization Development Company

Merehead — This is a Ukrainian IT company that has been launching projects in the fintech niche since 2015. The main focus is on developing solutions using blockchain technology and cryptocurrencies: CEX, DEX, bots for automatic crypto trading, and so on. Since 2020, the company has also been developing real estate tokenization platforms, one of the major projects — BrickFi, which allows investors to purchase lease agreements in the form of NFTs. Merehead offers comprehensive services, from target market analysis, strategy selection, to the creation and launch of the platform itself. Moreover, both the option of developing from scratch and buying a White Label with further branding is available. What stages does the launch of the platform include:

• Briffing and identification of goals, strategies, identification of target audience and the most suitable architecture, blockchain, type of tokens, profit sharing mechanisms, etc.;


• Architecture, frontend, and backend development;


• Creation of smart contracts for the generation of tokens of specific standards (for example, ERC-20, ERC-1400), profit sharing, etc.;


• Integration of payment systems (both fiat and cryptocurrency), API for KYC/AML;


• Legal integration, for example, for signing contracts + adapting the platform to the norms/standards of specific jurisdictions. The company has extensive experience in launching crypto projects in various countries — USA, Canada, the EU, and etc.;


• Pre-launch testing, including security checks, load tests, etc.;


• Further technical support and support: contract monitoring, bug fixes, platform updates, and more.

The main advantages of the company are high customization + individual approach, extensive experience working with the DeFi sector and STO, fast startup, understanding of legal nuances, as well as the ability to use ready-made modules. Read more details on our Merehead website. You can also write any questions to our managers.

FAQ

How much does it cost to Tokenize real estate?

The price of tokenization will vary for different companies + type of real estate + jurisdiction, and so on. On average, the price of tokenization of one object is $10,000 to $20,000. If you want to develop a full-fledged tokenization platform, the price will vary greatly depending on the functionality and scale of the project. A small marketplace will cost $30,000 to $60,000, an average one — $60,000 to $90,000, and a large one — $90,000 to $150,000. Developing from scratch will be more expensive, a more budget friendly and faster option — to purchase a White Label solution followed by branding and customization.

Is tokenization the future of real estate?

Yes, this is one of the most likely scenarios, as tokenization provides many advantages over the classic sale/purchase of real estate or lease agreements. Firstly, the possibility of fragmentation significantly reduces the entry threshold and expands the target audience. Secondly, smart contracts automate and speed up the process of concluding contracts, making profits and reducing the risk of errors due to the human factor. Thirdly, borders are blurring — can invest in real estate online from any country. More and more companies that own/build real estate are using this option and the trend will continue.

Which crypto will tokenize real estate?

In 2025, the Ethereum blockchain and its native tokens ERC-20, ERC-1400 are most often used for tokenization of real estate. However, since the network has significant drawbacks (high gas fees + slow transaction speeds), second-tier solutions or EVM-compatible networks, such as Polygon, are increasingly being used. Solana and Stellar networks/tokens are also sometimes used due to the high speed of operations. ERC tokens (both interchangeable and NFT) are likely to remain the most popular choice in the future.

What are the issues with tokenization in real estate?

The main difficulties lie in the legal recognition of transactions. Not all countries have adapted legislation and have norms/standards for tokens, which act as a right of ownership / lease for real estate. This is especially difficult if the investor is a resident of another country. Also, when tokenizing, existing regulations must be taken into account, for example, security tokens are subject to the same rules and restrictions as securities (there are often restrictions on secondary trading, investors are required to undergo KYC/AML procedures, and so on). Investors should also take into account that the liquidity of this market is not very high yet.

What role do smart contracts play in real estate tokenization

Smart contracts — the main component of the asset tokenization platform. They are responsible for the generation of tokens, confirm the owner/ownership, are used to automatically distribute income, allow you to buy/sell tokens, and so on. Also, if provided for, it is through smart contracts that token holders can participate in voting. Security and anti hacking — very important criteria for this component of the platform.

What are the potential risks associated with real estate tokenization

One of the potential risks — the vulnerability of smart contracts, as this can lead to hacking, theft, loss of assets, or errors in income distribution. There may also be technical failures when integrating offline real estate data into the blockchain. There are also risks associated with the uncertain legal status of tokens in some countries: sometimes such contracts/coins will not be recognized (depending on the jurisdiction, type of tokens, and so on) + in the future, regulatory pressure and the emergence of large norms and restrictions will increase, and any discrepancy will lead to losses. There is also a liquidity problem — the secondary market is poorly developed, so resale of assets is difficult.

How does tokenization impact the liquidity of real estate investments