Actual-world asset (RWA) tokenization can utterly overhaul the actual property funding sector, which is extremely illiquid, crammed with intermediaries, and excessive transaction prices, in response to Polygon CEO Mark Boiron.
In an interview with Cointelegraph, the CEO stated that tokenization of properties may take away pointless intermediaries, thereby reducing transaction prices.
The CEO added that fractional possession and buying and selling tokenized actual property on the secondary markets would open up liquidity and enhance the speed of cash. Boiron advised Cointelegraph:
"The factor you really need is the power to remove the illiquidity low cost on actual property. All actual property is illiquid and due to this fact it is discounted to a point. It may be extra priceless if it is liquid."
Lumia Towers, an ongoing $220 million business actual property growth in Istanbul, Turkey, that includes two skyscrapers with 300 mixed-use business and residential models, used Polygon's know-how to tokenize the venture.
Boiron stated that the way forward for actual property is onchain. Nevertheless, regulators should be comfy with blockchain know-how and public permissionless programs earlier than tokenized actual property turns into the de facto commonplace.
Lumia Towers conceptual picture. Supply: Polygon Labs
Associated: The $1 billion blueprint for tokenized real estate: RWAs shaping Dubai
Actual property coming onchain globally
In the USA, Quarter provides tokenized alternatives to debt-based home mortgages to extend ranges of house possession and make it extra reasonably priced to aspiring house patrons.
The corporate achieves this by assigning fractionalized fairness rights to each the property investor and the potential house purchaser, which will be bought — deviating from the normal debt-based mortgage financing that's the present commonplace in lots of jurisdictions.
In February 2025, actual property platform Blocksquare launched a real estate tokenization framework for the European Union that enables fairness rights to be assigned and transferred onchain.
Actual property asset tokenization is gaining popularity in the United Arab Emirates (UAE) in what has grow to be one of many hottest actual property markets on the planet.
In line with Tokinvest founder and CEO Scott Thiel, property builders within the UAE are scrambling to tokenize their tasks as a substitute means to conventional financing buildings.
Stablecoin issuer Tether additionally partnered with actual property platform Reelly Tech in February 2025 to expand the use of USDt (USDT) in actual property transactions within the UAE.
Journal: Block by block: Blockchain technology is transforming the real estate market
