It’s hard to imagine how intangible technology like blockchain could transform the real estate industry. But it is undoubtedly now a reality.
Blockchain technology allows real-world assets, such as real estate and land, to be divided into smaller, transferable units. This process, known as tokenization, revolutionizes the way these assets are held and distributed.
In simple terms, the tokenization of funds is the process of converting real-world assets (RWA) or funds into digital tokens using blockchain technology. RWAs encompass tangible assets such as real estate, intellectual property, art, currencies, commodities, stocks, bonds, money markets, etc. These assets frequently face challenges related to liquidity, transparency and accessibility within the traditional financial world.
Blockchain technology allows RWAs to be tokenized into digital tokens that enable fractional ownership, potentially making physical assets more accessible to a wider audience. Tokenization of RWAs can increase liquidity, transparency and accessibility, and is often described as a way to democratize traditional financial markets.
Financial giants like black rock And Visa have jumped into the world of tokenization. If a report of It is believed that at McKinsey & Company, the potential value of tokenized assets could reach nearly $2,000 billion by 2030.
