Commercial Tokenization
It involves tokenization of commercial properties with legally-binding blockchain protocols. Such assets include office spaces, retail outlets, shopping malls, etc.
Tokenization is splitting a property's legal ownership into several smaller units, thereby enabling more people to enjoy its fractional ownership.
Say, Oliver Jones has $5,000 to invest. Living in New York City, he knows that Hudson Yards, Manhattan, is always in demand and its prices keep increasing year after year. Now, even if he wants to invest in a Hudson Yards real estate project, with just $5,000 in his pocket, the investment is far from possible. The area's median sale price is well over $4.5 million!
This high ticket size keeps a lot of interested investors like Oliver at bay. They can’t invest in lucrative real estate projects and hence, can’t augment their ROIs. At the same time, real estate developers and property owners can’t benefit from such small-ticket investments, increasing the turnaround time for the sale and purchase of their assets. As their capital remains locked in during this period, they also cannot develop or invest in other projects.
So Real Estate Tokenization Company assists you with the feasible tokenization platform with unique features like enhanced liquidity and security to make your property tokenized like market shares.
With Real Estate Tokenization, a property can be tokenized into millions of tokens - just like a company gets securitized into millions of shares. So, for instance, we tokenize a property valued at $5 million into 10 million tokens using real estate tokenization. This brings the average price for a Hudson Yards property token down to $0.50. Here, investors like Oliver Jones can also participate in relevant investment opportunities. As an example, Oliver can buy 10,000 tokens for $5,000, which is a dream come true for Oliver!
However, the benefits of real estate blockchain tokenization are not limited to partial property ownership.
Liquidity is a major challenge for real estate assets. One of the main advantages of real estate tokenization is that it addresses this issue by making fractional ownership possible. It opens up investment opportunities for a larger pool of investors, wherein tokenized assets could be sold quickly and easily. Simply put, real estate tokenization increases the overall liquidity in the real estate market.
Another major advantage of real estate tokenization is that it makes assets available to you round the clock. You can check their performance and sell the tokens anytime and from any part of the world. All you need is an active internet connection!
Built on the immutable and robust protocols of a blockchain, tokenization comes with enhanced security features. So, while property documents can get forged, it's impossible to do so with tokenized real estate assets. It extends a greater peace of mind to investors, developers, and other players in the value chain. But what about the digital security of tokenized real estate? Are there safeguards against hackers?
When you tokenize a property, you can store its digital tokens in a digital wallet. Apart from the public key used for transactions, there is also a private key that safeguards this wallet. Only you have access to this private key. So, even if someone hacks into your wallet, which itself is a rare possibility, your tokens cannot be used or manipulated without this private key.
Note: It's recommended to keep your private key in a non-digital format where nobody can access it. You must also never lose this key, as it is imperative to have while accessing your assets.
Using blockchain, today, innovative solutions are also being built with a secure database having verified building and lease information. Such databases help in optimizing real estate businesses, and the real estate industry at large.
It involves tokenization of commercial properties with legally-binding blockchain protocols. Such assets include office spaces, retail outlets, shopping malls, etc.
Residential tokenization helps in the fractional ownership of a residential real estate asset. It is generally aimed at property owners, interested investors, real estate developers, and institutional players.
Trophy assets are tokenized to raise funds with high regulatory compliance. Such assets include famous or heritage properties.
While other types of tokenization involve an Asset Under Management, it is not always possible to have a property procured before tokenizing it. In such cases, a ‘Raise-then-Purchase’ model is the best-fit. It enables real estate players to market a real estate investment opportunity, raise the investment amount from investors, and then purchase the property and transfer ownership.
It needs to be noted that a Raise-then-Purchase Tokenization can only be processed after obtaining special reservation agreement or security guarantee by the property owner.
Digital real estate is one of the major asset classes across the globe. However, because of its illiquid nature and high ticket sizes of transactions, it does not drive as much transaction volume. Though REITs have somewhat improved the landscape over the past decades, it still hasn’t unlocked the sector's true potential, especially for retail investors.
Transmission of payment orders or security transactions, incl. netting of transactions and the establishment of final positions
Transfer of ownership of securities and other financial instruments and of financial compensation to respective parties (i.e. buyer and seller)
Asset safekeeping ensuring that holdings at central securities depository (CSD) are always equivalent to the value of securities owned by custodian's customers
Value-added services after trade execution (incl. collection of income, taxation services, general meetings voting, etc.)
At Global Blockchain Solution, we don’t merely have an in-depth knowledge of blockchain technology. We also come equipped with extensive expertise in the real estate sector, project management, distribution, and marketing. We have a deep understanding of the factors that can make or break your project and its ultimate success.
With our cross-disciplinary team, we provide you with integrated solutions. In other words, we take your project's end-to-end ownership and manage its success. We don’t leave room for excuses… we simply deliver results backed by data.
May 20th, 2023
Apr 4th, 2023
