The Next Generation for Markets Is the Tokenization of Real World Assets (#RWAs)
A thread 🧵👇
1/ What is the Tokenization of RWAs?
The process of RWA tokenization involves representing physical & traditional financial assets (land, gold, property rights) as digital tokens on a blockchain.
Tokenization has the power to revolutionize the financial landscape ‒ intrinsically changing how investments are managed, used, and monetized.
Nowhere is this more apparent than in the world’s most important and largest asset class - real estate.
The real estate market is being transformed by the power of tokenization.
The combination of blockchain and real estate shows a clear trend from the illiquid to the digital and liquid real estate investment.
Currently, the tokenized real estate market is worth around $500 million and is expected to reach $2.2 billion by 2025.
This represents a massive opportunity for investors to gain access to real estate assets that were previously out of reach.
3/ The Benefits
One of the key benefits of tokenization is that it allows fractional ownership of real estate assets.
This means that investors can buy and sell small portions of a property, making real estate investing more accessible and affordable for all.
Another benefit of tokenization is that it greatly increases liquidity in the real estate market.
Tokens can be bought and sold quickly and easily, reducing the time and costs associated with traditional real estate transactions.
Tokenization offers increased transparency and security for investors.
By using blockchain technology, all transactions are recorded on a secure and immutable ledger, reducing the risk of fraud and increasing transparency.
Tokenization can lead to greater efficiency in the real estate market.
By removing intermediaries and streamlining the transaction process, tokenization can reduce costs and speed up transactions.
In addition to these benefits, tokenization also offers greater access to global real estate markets.
Investors can buy and sell tokens from anywhere in the world, making it easier to diversify their portfolios and access new investment opportunities.
4/ How Early Are We?
Projects in the tokenization of real estate are right now at the bleeding edge
@dpetrovcic CEO at @blocksquare_io, one of Europe's leading companies in the space of tokenization of real estate, talks about this here:
Why do I cite $BST as a project of note in the space?
- They have spent 5 years building their product
- Over $45 million in real estate assets under tokenization
- Over 50 properties on the system
- White-labeled tech and infra
Blocksquare is also building out @Oceanpoint_BST to become the world's first truly decentralized real estate fund
One that has been designed from the ground up to hold an unlimited amount of real estate assets
Open for anyone to invest in: no matter how much they have to invest
6/ Oceanpoint could be a TRULY ground breaking product.
As soon as we get the DAO purchasing property tokens and distributing revenues to DAO members…
✅ Liquidity for property owners
✅ Democratised #RealEstate investment for all
✅ Global reach
With $45 million of real estate assets under tokenization, @blocksquare_io is gaining traction as one of Europe's most innovative platforms for the tokenization of real estate.
With an approach that is scalable; their focus is global.
The need to know👇
1/ What Exactly is Tokenization of Infrastructure for Real Estate & Why Does it Matter?
Imagine for a moment you own a property that has a market value of $3 Billion.
While this valuation certainly makes for eye-watering reading and a wealthy owner, it also presents a problem
2/ when you want to sell.
A buyer with incredibly deep pockets is required.
The problem of an illiquid market can be solved through tokenization.
Blocksquare makes investing in real estate assets as simple, borderless, and programmable as the rest of the internet.
1/ A recent article published on Entrepreneur deep dives “pseudonymity” and innovation in the #DeFi space
The article cites the @DJsofDeFi as an example of how pseudonymous identities are used to personify decentralized technologies during live-streamed podcasts. See below👇
2/ Similar to the concept of masked DJs — who are known more through their music than their actual identity
The concept behind DJs of DeFi is to help technology entrepreneurs discuss ideas and passion without the burden of bias
3/ Creating a pseudonymous economy in DeFi, not only maintains privacy, it also gives room for actual freedom of expression without being subject to various forms of online negativity.
This draws on @balajis concept of the pseudonymous economy