Real Estate Tokenization Strategy: A Short Note
by Vanessa Jane Block chain consultant
Real estate tokenization strategy involves the sale of tokens that represent some shares of the asset to prospective investors. It can be done for various types of property, like commercial and residential with ease.
The procedure to follow is
- A blockchain platform would be required to store the ownership of the tokenized property onto the tokens.
- The ownership rights must be easily transferable to anyone by the owner in an authorized way.
- The token should be able to be exchanged for a specific value backed by an underlying asset.
- The plethora of benefits for the investors is lack of a middleman in the system, low trading fees, adequate provision of liquidity, and low risk.
The main documents to prepare in the Real estate tokenization strategy are KYC (Know Your Customer) verification, token service agreement, regulatory and compliance, service agreements for the promotion and distribution of tokens, listing services agreements, a smart contract for each token, and custody agreements.
Hence, establish a Real estate tokenization strategy now and make maximum use of this promising phenomenon.
Created on Dec 19th 2020 01:18. Viewed 42 times.