Real-world plus (RWA) tokenization tin wholly overhaul the existent property concern sector, which is highly illiquid, filled with intermediaries, and precocious transaction costs, according to Polygon CEO Mark Boiron.
In an interrogation with Cointelegraph, the CEO said that tokenization of properties could region unnecessary intermediaries, thereby lowering transaction costs.
The CEO added that fractional ownership and trading tokenized existent property connected the secondary markets would unfastened up liquidity and summation the velocity of money. Boiron told Cointelegraph:
“The happening you truly privation is the quality to destruct the illiquidity discount connected existent estate. All existent property is illiquid and truthful it’s discounted to immoderate degree. It tin beryllium much invaluable if it’s liquid.”
Lumia Towers, an ongoing $220 cardinal commercialized existent property improvement successful Istanbul, Turkey, featuring 2 skyscrapers with 300 mixed-use commercialized and residential units, utilized Polygon’s exertion to tokenize the project.
Boiron said that the aboriginal of existent property is onchain. However, regulators indispensable beryllium comfy with blockchain exertion and nationalist permissionless systems earlier tokenized existent property becomes the de facto standard.
Lumia Towers conceptual photo. Source: Polygon Labs
Related: The $1 cardinal blueprint for tokenized existent estate: RWAs shaping Dubai
Real property coming onchain globally
In the United States, Quarter offers tokenized alternatives to debt-based location mortgages to summation levels of location ownership and marque it much affordable to aspiring location buyers.
The institution achieves this by assigning fractionalized equity rights to some the spot capitalist and the prospective location buyer, which tin beryllium sold — deviating from the accepted debt-based owe financing that is the existent modular successful galore jurisdictions.
In February 2025, existent property level Blocksquare launched a existent property tokenization framework for the European Union that allows equity rights to beryllium assigned and transferred onchain.
Real property plus tokenization is gaining popularity successful the United Arab Emirates (UAE) successful what has go 1 of the hottest existent property markets successful the world.
According to Tokinvest laminitis and CEO Scott Thiel, spot developers successful the UAE are scrambling to tokenize their projects arsenic an alternate means to accepted financing structures.
Stablecoin issuer Tether besides partnered with existent property level Reelly Tech successful February 2025 to expand the usage of USDt (USDT) successful existent property transactions successful the UAE.
Magazine: Block by block: Blockchain exertion is transforming the existent property market
