REAL ESTATE TOKENIZATION – WHY? At the time of writing, the financial industry is seeing a very significant trend in the growth of tokenization projects and tokenization solution and services providers. DigiShares provides a primary issuance platform that supports ongoing corporate management of the real estate fund, as well as trading via the built-in OTC marketplace. Other companies provide secondary trading exchanges for security tokens, custody solutions, legal services, etc. Many different pieces of the security token puzzle are now falling into place to form a more efficient, transparent, and secure blockchainbased infrastructure for securities transfer, settlement and trading.
TOKENIZATION OF REAL ESTATE – BEST PRACTICES This document willdescribein detailhow and why you should tokenizereal estate, and theDigiSharesapproach for this. Contents:
Real Estate Tokenization –Why? The DigiShares Platform Real Estate Tokenization Processes
Real estate is the biggest single asset class where tokenization can provide value – $228 trillion in total assets. The real estate market shares the value proposition of the overall securities market. We view some of the biggest benefits to real estate tokenization to be the ability to reduce ticket sizes by several orders of magnitude (from USD 100,000 to USD 1,000). This is made possible by the extreme automation of issuance and post-issuance processes, and it will dramatically increase the group of investors able to invest in a given fund. Another significant benefit is the new liquidity of real estate by making real estate assets tradeable. This will increase the amount of money available to invest in real estate, and on the other hand, will make the asset class more interesting for investors. 47
