Tokenized real estate is when a real-estate property or its cash flows are represented as a blockchain token (or tokens) to increase liquidity, streamline processes, and enable digital ownership.
In general, the use of blockchain technology for tokenized real estate requires the use of either non-fungible tokens (NFTs) or fungible tokens, depending on the goal and what’s being tokenized. NFTs are useful when a property—or groups of properties—is being considered as a whole (i.e., one or more properties, one token). Fungible tokens are useful for fractionalizing a whole into parts (i.e., one or more properties, 100 tokens).
According to KPMG, “#Tokenization is ideal for owners of a single asset or a small portfolio of assets, due to the significant reduction of time and cost in offering investors the right to participate in fractional ownership and subsequent secondary trading.”
TOKENIZATION WITH LANDSHARE
Tokenized real estate is breaking down the barriers of traditional investing and opening its doors to the masses in #Landshare.
In Landshare Each $LSRWA and $LAND token represents a share of a pool of US-based real estate assets. This means that as an #RWA holder, you are entitled to the same legal protections as an investor in a traditional company.
This makes the #RWATokens a simple and secure way to gain exposure to real estate directly on-chain.
