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.

Read more: Commerzbank, Deutsche Börse Team Up for Tokenized Real Estate and Art Marketplace