Property tokenization was gaining traction among cryptocurrency enthusiasts as a novel way to real estate investment, as the broader narrative of putting real-world assets on blockchain rails gathers steam.
What Happened: The high property prices in major cities like London and New York have made direct property investment increasingly unaffordable, paving the way for tokenized real estate as a viable alternative, according to a Financial Times report.
Unlike real estate investment trusts (REITs) that own or finance large clusters of commercial and residential buildings, tokenized real estate allows for small-scale investment in individual properties.
In property tokenization, assets such as houses or hotels are divided into digital tokens that signify ownership. These tokens, which contain details like the asset’s ownership …
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