Unlock the power of fractionalized real estate investments
Real estate is quite an illiquid market where capital comes most of the time from big asset managers like (re-)insurance companies. In a liquidity event where the company has the need of cash in order to pay big insured damages, part of the real estate portfolio is sold with a discount. With more fractionalized baskets of real estate investments, different exit strategies could be executed. Especially during these market conditions, where the investors below the institutionals want to participate in this secure asset class.
Opportunity for token issuers
At Tokengate, we work on a variety of tokenization projects for the real estate sector. Issuing a financial instrument as a token is as easy as in a traditional form. We now see real estate asset managers and banks starting to tokenize first properties, as they are convinced that digital assets will come and stay. As such, they now want to kick-off their learning curves. Where the token can add additional value in the real estate sector is, where it adds a utility. One can be that the ecosystem using the property is engaged. Think of a sports club buying back its sports facilities. Their fans can invest and get in return access through a VIP line, discounted annual passes, or training lessons with their idols. Another benefit can be to use the tokens and access decentralized finance liquidity pools.
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