Real Estate is an age-old investment that has been proven to be a cornerstone asset class in almost all portfolios. It is one of the strongest performing and largest asset classes in the world with an estimated value of over $200 trillion. Many investors believe that investing in Real Estate has more advantages than investing in other asset classes like stocks or bonds. Real Estate generally appreciates in value while providing a predictable cash flow and generates passive income.
Transactions for Real Estate remain archaic and unchanged for decades. Little to nothing has changed from late 1900. This outdated infrastructure with multiple third-party intermediaries has structural inefficiencies. Old practices create friction in transactions that have an impact on value and liquidity.
Tokenization automates many processes, which would reduce cost. Investing in assets that provide passive income, distributing these payments are usually done manually. Tokenization ‘cuts out the middleman’ by automating the process.