Tokenized real estate refers to a concept where property or the cash flow generated from a property is represented as tokens on a blockchain. The purpose of tokenized real estate, or property tokenization, is to increase liquidity, simplify transaction processes, and enable digital ownership that can be traded more easily—similar to other financial assets.
With this system, investors do not need to purchase an entire property unit. Instead, they can buy partial ownership (fractional shares). Each token grants proportional rights to profits, such as rental income or gains from the sale of the property.
In practice, property tokenization using blockchain technology can involve two types of tokens: NFTs (non-fungible tokens) and fungible tokens, depending on their intended use. NFTs are typically used when a single property (or a group of properties) is treated as one unified asset within a single token. Meanwhile, fungible tokens are used to divide ownership into smaller portions, allowing one property to be represented by multiple tokens that can be owned by many investors.
Tokenized silver is a digital asset built on blockchain technology, where each token represents a specific amount of ...