Real Estate Tokenization Platform: A Short Guide

Introduction

Real Estate investment is on the rim of the bucket list of nine out of ten people. Real Estate is considered as a sector that can pour out heavy yields. And, it is. But then again, come the problems of legalization, verification, and heavy paperwork. It is still one of those sectors where both the parties, i.e., buyers and sellers, have to struggle. With blockchain technology intervention, a new world has been introduced in front of us, known as the Real Estate Tokenization.

Real Estate Tokenization Platform

Real Estate Tokenization Platform is a process of creating digital assets on a blockchain-backed network, representing a property or a bucket of properties on a blockchain-based system. It can also be said it is the procedure where virtual tokens represent ownership of a real estate interest. So, you can say that here, you don’t have to face all those hisses of the outdated process of using documents.

Real Estate Tokenization Platform: Procedure

1. Choose and decide the property you want to be tokenize
2. Take into consideration the legal structures like, real estate fund, project finance, REIT, SPV.
3. Determine shareholder right and investor type selection
4. Selection of technology- blockchain, tokenization, globalized KYC/AML, marketplace.
5. Be ready to create token and distribution of it

Benefits

• High volume liquidity: Tokenization leads to a high percentage of yields and opens a high volume of liquidity that helps buyers and sellers efficiently conduct their business with a quick conversion of real estate values into cash.
• Partial ownership: Partial ownership can be obtained through the tokenization process. It reduces the burdens of maintenance, taxation, and other problems that are generally faced solely by real estate owners.
• Globalization: A real estate tokenization platform can help you stand out from the crowd, giving you a global opportunity.
• Eliminating any third-party interventions: Any action by a third-party is forbidden, when tokenization happens through the P2P network.
• Immutability: Immutable transaction records are offered that are entirely tamper-proof.
• Effective and efficient transactions: Real estate tokenization negates the laborious process of buying and selling by streamlining peer-to-peer transactions efficiently and effectively.

Essential points we note down while tokenization in various geographical locations

• For Hong Kong, approval is required from the Securities and Futures Commission (SFC).
• In Singapore, the Monetary Authority treats security tokens as a capital market product, and it offers a capital market service license for the same.
• The tokenization process is taken care of by the Security and Commodity Authority, in UAE.
• The USA has the Security and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) for looking after real estate tokenization platforms
• The Financial Market Supervisory Authority (FINMA) looks after trading and settlements of digital assets in Switzerland.

What Blockchain App Factory Has to Offer You?

At Blockchain App Factory, buying and selling real estate properties is made easy with blockchain technology. It helps you in negating all the laborious work. Tokenization is like a revolutionary change brought to you, by us, at a cost-effective price. It will open a new avenue of profit for you. We offer customized real estate tokenization platform development services as per your needs and standards. Our services are extraordinary, quick, and satisfying. Make your dream come true with Blockchain App Factory.