Real estate, historically accessible only to wealthy individuals and institutional investors, is being transformed by blockchain-based tokenization platforms that allow fractional ownership of properties for investments as small as $100.
These platforms work by creating digital tokens that represent shares in a specific property or portfolio of properties, with ownership rights, rental income distributions, and governance all managed through smart contracts.
The market for tokenized real estate has grown to over $16 billion in total value locked, with commercial properties in major metropolitan areas being the most popular asset class among platform users.
Regulatory frameworks are evolving to accommodate this new asset class, with several jurisdictions now providing clear guidance on how tokenized securities should be issued, traded, and taxed.
