Real estate tokenization is the process of converting property ownership into digital tokens on a blockchain, allowing for fractional investment.

This innovation lowers barriers to entry, increases liquidity, and streamlines transactions through smart contracts while offering transparency. However, regulatory compliance, security risks, and market volatility present challenges to this evolving method of property investment.

Ultimately, tokenization aims to democratize real estate and integrate it with decentralized finance.

Some companies leading the charge are Propy, RealT and Harbor.

Harbor specializes in the tokenization of commercial real estate assets where RealT, a pioneer in residential real estate tokenization in the United States allows investors to purchase fractions of properties and receive rental income in cryptocurrencies.

With Propy, their platform provides a digital title system and a fully online transaction closing process.

As always the information provided is for educational purposes only and not financial advice. Always do your research before making and investment decisions..