Tokenization May Make Real Estate Investment Easier: Report

Tokenization in real estate is an “inevitable next chapter in blockchains 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, managing partner of Moore Cayman wrote in the report.

• “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.

• Texas-based commercial real estate marketplace Red Swan has tokenized $2.2 billion in real estate through security token platform Polymath, while it has another $4 billion in properties in the tokenization pipeline, CoinDesk reported in February.