How does real estate tokenization work?

Real estate tokenization works similarly to the crowdfunding process, where an asset is partitioned into small fractions with the help of a smart contract, an automated piece of code residing on a blockchain. Anyone who buys or owns a token owns a part of the real estate.

What is tokenized real estate?

The simplest example of tokenized real estate is representing a single real-estate property as an NFT. An NFT is a unique token that is verifiably different from every other token on a blockchain—making it a good fit for real estate because every property is different. Features: Owning the NFT can be equivalent to owning the property.

What is real estate tokenization compliance?

Real estate tokenization compliance involves converting ownership of real estate assets into digital tokens on a blockchain. This process must adhere to various compliance requirements to ensure legality and protect investors. Issuers must register their tokens or qualify for an exemption, such as Regulation D or Regulation A+.