Real estate tokenization as an alternative investment solution

Berentsen, Aleksander and Markheim, Marina (2022): Real estate tokenization as an alternative investment solution. Forthcoming in: Springer Book on “Innovation and Real Estate”

Abstract

Tokenization refers to the process of creating a virtual representation of a real asset by creating fungible tokens which enables fractional ownership. If such tokens are created on a public and permissionless blockchain such as the Ethereum blockchain, they are immediately tradeable worldwide 24/7. Established token standards and immediate settlement are further benefits of this novel technology. Tokenization has the potential to remedy the illiquidity problems of real estate investments. However, outdated regulatory frameworks and regulatory uncertainties currently still limit a broad adoption of the technology.

• Item Type: MPRA Paper
• Language: English
• Keywords: blockchain technology, smart contracts, fractional ownership, tokenization of real estate, security token, token regulation
• Subjects: G - Financial Economics > G1 - General Financial Markets > G19 - Other; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R31 - Housing Supply and Markets; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R32 - Other Spatial Production and Pricing Analysis; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R39 - Other

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