Real Estate Tokenization is the process of converting ownership rights in a property (or revenue streams from it) into digital tokens on a blockchain. Each token represents a share of the asset, enabling fractional ownership. This opens the market to a wider pool of investors who can buy small portions of premium properties without large capital outlays.
A tokenized model also improves liquidity, as investors can trade tokens on secondary markets far faster than selling traditional real estate shares. Smart contracts automate processes such as dividend payouts (rental income), compliance checks, and transfer of ownership.
Platforms offering real estate tokenization typically include investor dashboards, digital KYC verification, automated settlement, and integration with both DeFi and centralized exchanges. For developers, tokenizing property can unlock capital more quickly, while investors benefit from transparency and diversification. In 2025, this model is becoming a mainstream bridge between traditional property investment and blockchain-based finance.
