News
The Current State of Real Estate Tokenization
Blockchain technology is largely shrouded in hype and obscured by hyperbole. Like many groundbreaking innovations, the promise of Blockchain has far outpaced the practical development. It is important to understand how Blockchain is being applied to the real estate market today, and how those applications are expected to mature in the future. To help cut through the haze, we offer below an overview of the current state and future promise of one of the most impactful Blockchain real estate applications, real estate tokenization.
Tokenization is a catch-all term that can be applied to nearly any aspect of the Blockchain industry. In this article, we will use the term “tokenization” to refer to tokenized securities. Tokenization can be simply thought of as a form of securitization, selling fractional interests using Blockchain-based capital markets for liquidity instead of traditional markets such as the NYSE. This was pioneered by a trio of venture capital firms: Blockchain Capital, Science Blockchain, and SPiCE VC. Each company raised capital by tokenizing their funds: either entire LP equity positions, or future cash flows from investments. This process revealed benefits in liquidity, investor management, and transactional efficiency that can be applied to real estate.
Liquidity
Future Promise: By tokenizing an asset, the issuer gains access to an expanded pool of liquidity. Instead of being limited to the regional investors and 9:30 AM – 4 PM trading hours of a traditional exchange, tokens trade freely across borders and at all hours of the day. This global pool of investors and round-the-clock order book will unlock additional liquidity premiums and pricing efficiency. Each of the VC fund pioneers were able to raise over $10 million for their funds, indicating positive investor demand in a nascent market.
Current Reality: There have only been one or two tokenized real estate offerings, which have not yet generated the same demand as the VC offerings. The return profile of real estate is radically different than the returns offered by Blockchain companies or the VC funds that invest in them. Entreaties about the risk-adjusted returns and long-term stability of real estate vs. crypto have fallen on deaf ears. This is partly because Blockchain capital markets mainly provide access to global liquidity from retail investors, who generally do not understand the benefits of diversification or risk-adjusted returns as well as institutional investors. Retail liquidity also pales in comparison to that offered by institutional investors, who so far have been barred from the market by a lack of custody, insurance, and sophisticated products. There are many companies working on these solutions, and institutional interest from the sidelines has been extensive. Tokenization platforms like Slice RE have further prepared for the entrance of institutional investors, by tokenizing popular institutional investments like LP equity positions in commercial real estate.
Investor Management
Future Promise: Blockchains are basically just ledgers, keeping track of who holds what token at any time. By layering on security token protocols (aka smart contracts), an issuer can automate compliance with regulations, operating agreements, PPMs, and lender requirements. Lenders do not have to rely on a borrower’s good faith to inform them of changes in the capital stack. Programmable securities can automate the process of dividend payments and create software interfaces for the execution of equity rights.
Current Reality: Lenders are concerned about the commitment of small investors in highly fractionalized cap tables, and don’t yet understand the compliance benefits of smart contracts. Therefore, obtaining leverage on tokenized capital structures can be difficult. Smart contracts are new software and have suffered failures in the past as pioneers have iterated best practices. Securitize, Harbor, and Polymath are leaders in the creation of secure, compliant security token protocols, and have taken up the mantle of educating institutional investors and lenders on the benefits of tokenized investment structures.
Transactional Efficiency
Future Promise: The title to a property can be vested in a single token, reducing transactions from complex multi-party processes to a simple transfer between buyer and seller. The token’s history is publicly auditable, simplifying the title research and insurance process. Such a token can be placed into a smart contract wallet that acts as an autonomous escrow, holding the seller’s property token and the buyer and lender’s digital currency proceeds in escrow until all parties assent to the exchange.
Current Reality: The real estate market is just starting to experiment with cryptocurrency transactions, with no more than a couple dozen deals completed, mostly in the residential space. Startups tackling transactional efficiency include HouseHodl, Velox.Re, and Propy. This vertical will probably continue to see sluggish adoption, as it requires the acceptance of institutions and the general public. Institutions will likely continue to experiment with Blockchain for back-office use cases before getting comfortable enough to roll out public-facing Blockchain software. Until institutional adoption and introduction, the general public is unlikely to adopt the technology on a large scale.
Conclusion
Informed, rational investors should continue to be wary of startups that promise massive disruption on short timeframes. This can be difficult in a highly volatile market, where newly-announced ventures raise tens of millions in a heartbeat from eager investors foaming (or fomo-ing) at the mouth to get in on the next big winner. Nonetheless, the achievements and progress of the pioneering startups noted in this article are laying the groundwork for new, efficient, automated, and global capital markets within the next decade. Each successful implementation eases the path for further innovation and adoption, accelerating the rate of change. Every real estate professional should keep abreast of this developing technology, or risk being left behind when it explodes into the mainstream.
bezplatný účet na binance
May 15, 2023 at 3:22 PM
Thanks for sharing. I read many of your blog posts, cool, your blog is very good.
тахта угловая купить
June 1, 2023 at 3:47 PM
I have been surfing online more than three hours lately, yet I never found any fascinating article like yours. It’s lovely value enough for me. In my opinion, if all site owners and bloggers made just right content as you did, the net will be much more useful than ever before.
Трансфер в Шерегеш
June 6, 2023 at 1:43 PM
Fantastic goods from you, man. I’ve understand your stuff previous to and you’re just too great. I really like what you’ve acquired here, really like what you’re stating and the way in which you say it. You make it entertaining and you still take care of to keep it smart. I cant wait to read far more from you. This is actually a great site.
логистический склад
June 12, 2023 at 9:53 AM
Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point. You definitely know what youre talking about, why waste your intelligence on just posting videos to your blog when you could be giving us something enlightening to read?
мебель в Твери
June 12, 2023 at 1:12 PM
I’d like to thank you for the efforts you have put in writing this website. I am hoping to view the same high-grade blog posts from you in the future as well. In fact, your creative writing abilities has inspired me to get my own blog now 😉
http://www.skupkamsk.site/
June 13, 2023 at 7:52 AM
сдать золото цена за 1 – стоимость лома золота за 1 грамм
логистический центр Минск
June 16, 2023 at 10:16 AM
I simply could not depart your site prior to suggesting that I extremely enjoyed the standard information a person supply in your visitors? Is going to be back often in order to inspect new posts
bezogoroda.ru
June 17, 2023 at 10:35 AM
Hi there mates, its wonderful piece of writing regarding educationand completely explained, keep it up all the time.
Перекладные фокусы
June 21, 2023 at 12:08 PM
Good replies in return of this difficulty with real arguments and explaining everything about that.
Maryflerm
June 22, 2023 at 5:09 AM
medrol 5mg tablets
Samflerm
June 22, 2023 at 10:18 AM
clomid
Davidswelo
June 23, 2023 at 3:52 AM
prinzide zestoretic
Ivyflerm
June 24, 2023 at 6:25 AM
augmentin 1 mg
Darrylsix
June 25, 2023 at 2:11 AM
how much is elimite cream
Ashflerm
June 25, 2023 at 9:47 AM
cafergot tablets
Zakflerm
June 25, 2023 at 12:47 PM
cialis pills for men
Elwoodgrina
June 26, 2023 at 4:50 AM
malegra 120 mg
Michaeldic
June 26, 2023 at 6:28 AM
budesonide gel
spravki-kupit.ru
June 26, 2023 at 6:53 PM
нужна медицинская справка
Ashflerm
June 26, 2023 at 9:29 PM
cost of celebrex in australia
диплом 2023
June 27, 2023 at 1:56 PM
Hi, i think that i saw you visited my blog so i got here to go back the favor?.I am trying to find things to improve my website!I guess its ok to use some of your concepts!!
Zakflerm
June 27, 2023 at 2:17 PM
elimite 5 cream
Josephfeshy
June 27, 2023 at 3:17 PM
http://edpill.pro/# male erection pills
Richardsquab
June 27, 2023 at 10:59 PM
amoxicillin generic price in india
JamesVow
June 28, 2023 at 1:37 AM
canada prescription: prescription drugs without the prescription – best canadian drug prices
Elwoodgrina
June 28, 2023 at 2:23 AM
budesonide 1 mg tablet
JosephHen
June 29, 2023 at 2:41 AM
how to get amoxicillin without a script
Josephfeshy
June 29, 2023 at 9:01 AM
http://edpill.pro/# ed meds online without doctor prescription
Luthervions
June 29, 2023 at 10:13 AM
how does aviator work aviator game tricks how to play aviator on msport
Pingback: meritking
Samflerm
June 29, 2023 at 2:06 PM
erectafil 20 mg
Ashflerm
June 29, 2023 at 2:40 PM
online diflucan
JamesSog
June 30, 2023 at 12:09 AM
http://sildenafilpills.pro/# sildenafil generic discount
Pingback: grandpashabet
Ivyflerm
June 30, 2023 at 1:05 PM
where to order clomid
ZacharyPaync
June 30, 2023 at 1:30 PM
canadianpharmacyworld com: certified online pharmacy canada – canadian drugs online
Howarddrend
June 30, 2023 at 4:01 PM
http://paxlovid.pro/# Paxlovid over the counter
ZacharyPaync
June 30, 2023 at 8:14 PM
canadian pharmacy 24: canadian pharmacy shipping to USA – canadian pharmacy online
Howarddrend
June 30, 2023 at 10:46 PM
http://birthcontrolpills.pro/# birth control pills without seeing a doctor
Davidswelo
July 1, 2023 at 3:50 AM
disulfiram for sale
Gregorytig
July 1, 2023 at 3:58 AM
birth control pills without seeing a doctor birth control pills delivery birth control pills prescription
ZacharyPaync
July 1, 2023 at 4:59 AM
canadian pharmacy 24 com: certified online pharmacy canada – legitimate canadian online pharmacies
Brianzen
July 1, 2023 at 5:10 AM
birth control pills online: birth control pills prescription – birth control pills cost
Howarddrend
July 1, 2023 at 9:00 AM
https://canadianpharm.pro/# canadian pharmacy price checker
Ralphalard
July 1, 2023 at 9:21 AM
http://paxlovid.pro/# paxlovid india
Brianzen
July 1, 2023 at 12:45 PM
birth control pills cost: п»їbuy birth control pills online – birth control pills online
ZacharyPaync
July 1, 2023 at 3:02 PM
paxlovid price: п»їpaxlovid – paxlovid pharmacy
Howarddrend
July 1, 2023 at 7:27 PM
http://paxlovid.pro/# paxlovid price
Gregorytig
July 1, 2023 at 7:47 PM
reddit canadian pharmacy canadian pharmacy cheap medications canada pharmacy online
Brianzen
July 1, 2023 at 8:15 PM
birth control pills: birth control pills delivery – birth control pills prescription
Ralphalard
July 1, 2023 at 9:10 PM
https://birthcontrolpills.pro/# birth control pills online
Maryflerm
July 1, 2023 at 9:24 PM
atarax tablet 10 mg
Davidswelo
July 2, 2023 at 1:00 AM
where can i buy 100mg clomid
ZacharyPaync
July 2, 2023 at 1:13 AM
paxlovid india: paxlovid pharmacy – paxlovid for sale
Joeflerm
July 2, 2023 at 2:10 AM
metformin tablets where to buy
Brianzen
July 2, 2023 at 4:12 AM
birth control pills delivery: over the counter birth control pills – birth control pills
Howarddrend
July 2, 2023 at 6:00 AM
https://canadianpharm.pro/# canadian pharmacy victoza
ZacharyPaync
July 2, 2023 at 11:20 AM
Paxlovid buy online: Paxlovid over the counter – Paxlovid over the counter
Eyeflerm
July 2, 2023 at 11:43 AM
clomid from mexico
Ralphalard
July 2, 2023 at 1:21 PM
http://canadianpharm.pro/# legit canadian pharmacy
Gregorytig
July 2, 2023 at 3:39 PM
Paxlovid buy online paxlovid covid buy paxlovid online
Brianzen
July 2, 2023 at 3:57 PM
birth control pills: price for birth control pills – cheap birth control pills
Howarddrend
July 2, 2023 at 4:30 PM
https://paxlovid.pro/# п»їpaxlovid
ZacharyPaync
July 2, 2023 at 9:32 PM
paxlovid cost without insurance: Paxlovid buy online – buy paxlovid online
JosephHen
July 3, 2023 at 12:42 AM
tizanidine 4 mg price
SamuelNug
July 3, 2023 at 1:27 AM
how to get bactrim
Howarddrend
July 3, 2023 at 3:06 AM
http://canadianpharm.pro/# canadian drug stores
Brianzen
July 3, 2023 at 3:37 AM
canadian mail order pharmacy: canadian international pharmacy – best rated canadian pharmacy
ZacharyPaync
July 3, 2023 at 7:41 AM
paxlovid covid: paxlovid india – paxlovid pill
Ralphalard
July 3, 2023 at 8:09 AM
http://canadianpharm.pro/# canadian world pharmacy
Howarddrend
July 3, 2023 at 1:39 PM
http://birthcontrolpills.pro/# п»їbuy birth control pills online
купить чеки на гостиницу в санкт петербурге
July 3, 2023 at 2:22 PM
Very nice article. I definitely love this website. Continue the good work!
Gregorytig
July 3, 2023 at 3:17 PM
canadian pharmacy checker [url=https://canadianpharm.pro/#]canadian international pharmacy[/url] canadian pharmacies comparison
ZacharyPaync
July 3, 2023 at 5:51 PM
canadian pharmacy 24h com: canadian international pharmacy – canadian pharmacy 1 internet online drugstore
Howarddrend
July 4, 2023 at 12:13 AM
http://paxlovid.pro/# paxlovid for sale
Ralphalard
July 4, 2023 at 1:36 AM
http://paxlovid.pro/# paxlovid price
Brianzen
July 4, 2023 at 1:53 AM
birth control pills prescription: buy birth control over the counter – п»їbuy birth control pills online
Richardsquab
July 4, 2023 at 2:03 AM
antabuse australia
ZacharyPaync
July 4, 2023 at 4:00 AM
legit canadian pharmacy: canadian international pharmacy – canadian online pharmacy
Howarddrend
July 4, 2023 at 10:45 AM
http://birthcontrolpills.pro/# birth control pills prescription
чеки из гостиницы санкт петербурга
July 4, 2023 at 11:22 AM
Howdy! This is my first visit to your blog! We are a group of volunteers and starting a new initiative in a community in the same niche. Your blog provided us valuable information to work on. You have done a marvellous job!
Brianzen
July 4, 2023 at 11:31 AM
paxlovid cost without insurance: Paxlovid over the counter – paxlovid pharmacy
Gregorytig
July 4, 2023 at 11:33 AM
my canadian pharmacy certified online pharmacy canada canadian pharmacy 24 com
ZacharyPaync
July 4, 2023 at 2:12 PM
canadian pharmacy store: certified online pharmacy canada – canadian pharmacy meds
Ralphalard
July 4, 2023 at 5:27 PM
https://birthcontrolpills.pro/# buy birth control over the counter
Brianzen
July 4, 2023 at 9:10 PM
birth control pills delivery: birth control pills prescription – birth control pills cost
Howarddrend
July 4, 2023 at 9:21 PM
https://canadianpharm.pro/# canadian pharmacy prices
ZacharyPaync
July 5, 2023 at 12:25 AM
paxlovid covid: Paxlovid buy online – paxlovid covid
DerekVok
July 5, 2023 at 7:14 AM
cheap ed pills: cheap erectile dysfunction pill – ed treatment pills
Richardhaity
July 5, 2023 at 7:38 AM
pills for ed best treatment for ed top erection pills
Anthonyfleno
July 5, 2023 at 9:08 AM
http://edpills24.pro/# ed remedies
KevinDup
July 5, 2023 at 11:10 AM
http://indiapharmacy.world/# п»їlegitimate online pharmacies india
DerekVok
July 5, 2023 at 2:10 PM
best india pharmacy: india pharmacy – indian pharmacy
fake casino online
July 5, 2023 at 2:17 PM
I read this article fully about the resemblance of newest and previous technologies, it’s remarkable article.
Ivyflerm
July 5, 2023 at 2:38 PM
amitriptyline 12.5 mg
WilbertDyevy
July 5, 2023 at 3:25 PM
male erection pills: treatment for ed – best ed drug
Anthonyfleno
July 5, 2023 at 3:56 PM
http://edpills24.pro/# ed drugs
KevinDup
July 5, 2023 at 7:34 PM
http://indiapharmacy.world/# cheapest online pharmacy india
DerekVok
July 5, 2023 at 10:54 PM
non prescription ed drugs: erection pills – ed pills that really work
Anthonyfleno
July 6, 2023 at 1:06 AM
http://indiapharmacy.world/# indian pharmacy
mexican pharmacies shipping to usa
July 6, 2023 at 1:52 AM
canadian pharmacy presription and meds
canada pharmacies online reviews
July 6, 2023 at 4:04 AM
list of legitimate canadian pharmacies
Richardhaity
July 6, 2023 at 4:27 AM
medication from mexico pharmacy mexican border pharmacies shipping to usa mexican drugstore online
best canadian pharcharmy online
July 6, 2023 at 5:40 AM
pharmacies with no prescription
KevinDup
July 6, 2023 at 6:46 AM
http://mexicanpharmacy.life/# mexican border pharmacies shipping to usa
WilbertDyevy
July 6, 2023 at 9:30 AM
ed pills cheap: top erection pills – erectile dysfunction medicines
DerekVok
July 6, 2023 at 9:34 AM
mexican rx online: mexico drug stores pharmacies – buying prescription drugs in mexico online
Anthonyfleno
July 6, 2023 at 11:22 AM
http://edpills24.pro/# cures for ed
Pingback: madridbet
Eyeflerm
July 6, 2023 at 1:41 PM
indomethacin indocin
KevinDup
July 6, 2023 at 5:56 PM
http://edpills24.pro/# ed pills that really work
daachka.ru
July 6, 2023 at 7:34 PM
You ought to take part in a contest for one of the greatest sites on the internet. I am going to recommend this site!
DerekVok
July 6, 2023 at 8:04 PM
buying ed pills online: medication for ed dysfunction – best over the counter ed pills
Anthonyfleno
July 6, 2023 at 9:26 PM
http://edpills24.pro/# best male enhancement pills
Ivyflerm
July 7, 2023 at 12:35 AM
accutane south africa
WilbertDyevy
July 7, 2023 at 2:15 AM
cheap erectile dysfunction pill: ed treatment drugs – online ed pills
Richardhaity
July 7, 2023 at 2:23 AM
male ed pills ed pills that work online ed pills
KevinDup
July 7, 2023 at 5:01 AM
http://indiapharmacy.world/# Online medicine home delivery
DerekVok
July 7, 2023 at 6:37 AM
buying prescription drugs in mexico online: buying from online mexican pharmacy – mexican rx online
Anthonyfleno
July 7, 2023 at 7:37 AM
https://edpills24.pro/# best ed pill