Tokenization May Make Real Estate Investment Easier: Report

Tokenization in real estate is an “inevitable next chapter in blockchain’s disruption of capital markets,” and could make major progress in the next five years, according to a report published by Moore Intelligence on Wednesday.

The emergence of new secondary markets for digital property assets might mean more liquidity, efficiency and lower costs for investors, the report noted.
“Tokenization has potential to drive down transactional costs and improve efficiency via the use of ‘smart contracts’ which can replace copious paperwork and laborious administration,” according to the report.
Institutional investors still largely remain on the sidelines waiting for more regulatory clarity, the report said.
Moore Global is the parent company of Moore Cayman, an auditing firm that published attestation reports for Tether, issuer of the largest stablecoin, USDT.
“From an audit perspective, adding digital assets to a portfolio can be advantageous as blockchain technology can make transactions more transparent and trackable,” David Walker, a managing partner at Moore Cayman, wrote in the report.
Texas-based commercial real estate marketplace Red Swan had tokenized $2.2 billion in real estate through security token platform Polymath, and it had another $4 billion in properties in the tokenization pipeline, CoinDesk reported in February 2020.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Frances Yue

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.