What is real estate tokenization?

Real estate tokenization is the process of converting ownership of real estate into digital tokens, allowing their transfer and trading on the blockchain.

Benefits of real estate tokenization

Discover the numerous benefits that real estate tokenization offers issuers and investors, from the automation of processes to the democratization of investment opportunities.

Real Estate Tokenization Process

Explore the key steps in carrying out real estate tokenization, from ecosystem assembly to token distribution and partnership operations management.

• Ecosystem assembly.- Learn how the ecosystem necessary to carry out real estate tokenization is organized and configured, involving different actors and guaranteeing adequate regulation.
• Creation of security tokens: Discover how security tokens are structured and how jurisdictional regulations are applied directly through the use of the blockchain.
  Configuring Compliance: Explore how automating regulatory compliance through blockchain reduces costs and the risk of error in the tokenization process.
• Token distribution: Learn how the blockchain allows for an automated and transparent distribution of tokens, ensuring the traceability of transactions.
• Execution and management of company operations Learn how blockchain technology improves the execution and management of company operations, simplifying processes such as dividends, reporting and management of new investors.

Discover how Tu Inmueble Real Estate stands out as a pioneer in Peru by offering real estate tokenization, providing investors with previously inaccessible investment opportunities.

Expanding investment opportunities

Explore how real estate tokenization has the potential to transform the market by opening up investments to a broader global set of investors and facilitating the innovation of new product offerings.

How the real estate tokenization process work?

• Ecosystem assembly: The first step in the real estate tokenization process is to assemble a complete ecosystem that involves different key actors. This includes KYC/AML providers, law firms, broker-dealers, escrow agents, and cap table management providers, among others. These actors work together to ensure the integrity and proper regulation of real estate tokens.
• Creation of security tokens: Once the ecosystem is established, the security tokens are created. The configuration of these tokens should be simple and intuitive, allowing jurisdictional regulations to be applied directly through the use of the blockchain. This ensures regulatory compliance and facilitates the transfer and negotiation of tokens.
• Compliance configuration: Regulatory compliance is a critical aspect of real estate tokenization. Blockchain enables the automation of compliance, reducing costs and the risk of error. A real estate tokenization platform should enable fast processing and low protocol fees, scaling as demand and regulation complexity grow.
• Token distribution: Token distribution is another important step in the real estate tokenization process. The blockchain offers an automated and reportable way to manage the initial distribution of tokens and future distribution events. This ensures transparency and traceability of all transactions related to tokenized real estate assets.
• Execution and management of company operations: Blockchain technology improves the execution and management of company operations related to tokenized real estate assets. Legacy processes, which are often complex and error-prone, are simplified through automation and transparent record-keeping. This facilitates quick and easy dividend execution, reporting, and management of new investors, paving the way to liquidity in the private market.

Advantages of real estate tokenization

Real estate tokenization offers a number of significant advantages for issuers and investors. These advantages include:

• Increased efficiency: The utilization of blockchain technology eliminates the need for traditional intermediaries, resulting in reduced settlement time and cost savings for issuance and other related processes.
• Cost reduction: Automation, transparent record keeping, and reliance on blockchain infrastructure lead to significant cost reductions compared to traditional methods. Real estate tokenization can reduce bond issuance and fundraising costs, benefiting both issuers and investors.
• Increased liquidity: Real estate tokenization increases the liquidity of traditionally illiquid and non-fractional assets, such as real estate. This allows investors to access a greater variety of assets and diversify their portfolios more effectively.
• Greater access to investments: Real estate tokenization opens investments to a broader global set of investors, democratizing access to opportunities that were previously limited to a few.
• Better Compliance: Programming compliance rules directly into real estate tokens via the blockchain improves transparency and makes it easier to manage complex compliance requirements.

Conclusion:

Real estate tokenization is an innovative technology that offers numerous benefits for issuers and investors in the real estate market. With Tu Inmueble Real Estate as a pioneer in Peru, real estate tokenization is positioned as an efficient, transparent, and accessible form of real estate investment. Take advantage of the advantages of real estate tokenization and diversify your portfolio with previously inaccessible assets.