What is Real Estate Tokenization?

Real Estate Tokenization

Tokenization is splitting a property's legal ownership into several smaller units, thereby enabling more people to enjoy its fractional ownership.

Say, Oliver Jones has $5,000 to invest. Living in New York City, he knows that Hudson Yards, Manhattan, is always in demand and its prices keep increasing year after year. Now, even if he wants to invest in a Hudson Yards real estate project, with just $5,000 in his pocket, the investment is far from possible. The area's median sale price is well over $4.5 million!

This high ticket size keeps a lot of interested investors like Oliver at bay. They can’t invest in lucrative real estate projects and hence, can’t augment their ROIs. At the same time, real estate developers and property owners can’t benefit from such small-ticket investments, increasing the turnaround time for the sale and purchase of their assets. As their capital remains locked in during this period, they also cannot develop or invest in other projects.

So Real Estate Tokenization Company assists you with the feasible tokenization platform with unique features like enhanced liquidity and security to make your property tokenized like market shares.

Enter Real Estate Tokenization

With Real Estate Tokenization, a property can be tokenized into millions of tokens - just like a company gets securitized into millions of shares. So, for instance, we tokenize a property valued at $5 million into 10 million tokens using real estate tokenization. This brings the average price for a Hudson Yards property token down to $0.50. Here, investors like Oliver Jones can also participate in relevant investment opportunities. As an example, Oliver can buy 10,000 tokens for $5,000, which is a dream come true for Oliver!

However, the benefits of real estate blockchain tokenization are not limited to partial property ownership.

Real Estate Tokenization

Other Major Benefits of
Real Estate Tokenization

Increased Liquidity

Increased Liquidity

Liquidity is a major challenge for real estate assets. One of the main advantages of real estate tokenization is that it addresses this issue by making fractional ownership possible. It opens up investment opportunities for a larger pool of investors, wherein tokenized assets could be sold quickly and easily. Simply put, real estate tokenization increases the overall liquidity in the real estate market.

Round-the-clock Access

Another major advantage of real estate tokenization is that it makes assets available to you round the clock. You can check their performance and sell the tokens anytime and from any part of the world. All you need is an active internet connection!

Round-the-clock Access
Enhanced Security

Enhanced Security

Built on the immutable and robust protocols of a blockchain, tokenization comes with enhanced security features. So, while property documents can get forged, it's impossible to do so with tokenized real estate assets. It extends a greater peace of mind to investors, developers, and other players in the value chain. But what about the digital security of tokenized real estate? Are there safeguards against hackers?

When you tokenize a property, you can store its digital tokens in a digital wallet. Apart from the public key used for transactions, there is also a private key that safeguards this wallet. Only you have access to this private key. So, even if someone hacks into your wallet, which itself is a rare possibility, your tokens cannot be used or manipulated without this private key.

Note: It's recommended to keep your private key in a non-digital format where nobody can access it. You must also never lose this key, as it is imperative to have while accessing your assets.

Verified Building and Lease Information

Using blockchain, today, innovative solutions are also being built with a secure database having verified building and lease information. Such databases help in optimizing real estate businesses, and the real estate industry at large.

Verified Building and Lease Information

Different types of
Real Estate Tokenizations

Commercial Tokenization

Commercial Tokenization

It involves tokenization of commercial properties with legally-binding blockchain protocols. Such assets include office spaces, retail outlets, shopping malls, etc.

Residential Tokenization

Residential Tokenization

Residential tokenization helps in the fractional ownership of a residential real estate asset. It is generally aimed at property owners, interested investors, real estate developers, and institutional players.

Trophy Tokenization

Trophy Tokenization

Trophy assets are tokenized to raise funds with high regulatory compliance. Such assets include famous or heritage properties.

Raise-then-Purchase Tokenization

Raise-then-Purchase Tokenization

While other types of tokenization involve an Asset Under Management, it is not always possible to have a property procured before tokenizing it. In such cases, a ‘Raise-then-Purchase’ model is the best-fit. It enables real estate players to market a real estate investment opportunity, raise the investment amount from investors, and then purchase the property and transfer ownership.

It needs to be noted that a Raise-then-Purchase Tokenization can only be processed after obtaining special reservation agreement or security guarantee by the property owner.

How does
Real Estate Tokenization work?

Here's a simplified representation of the real estate tokenization process.

Asset Deal Structuring
Asset Deal
Due Diligence
Digitization of Legal Documents
Digitization of
Legal Documents
Technology Selection
Marketing & Distribution
Marketing &
After-Sales Support


  • Investor Dashboard
  • Issuer Dashboard
  • KYC/AML/accreditation
  • Automated Trading Compliance
  • Share Cap Table
  • Shareholder Meetings and Voting System
  • Payment of Dividends
  • Freezing/Renewal of Lost Tokens
  • Digital Stock Certificates
  • Investor Forum and Internal Trading

How does Digital Real Estate
Benefit The Investor?

Benefit The Investor

Digital real estate is one of the major asset classes across the globe. However, because of its illiquid nature and high ticket sizes of transactions, it does not drive as much transaction volume. Though REITs have somewhat improved the landscape over the past decades, it still hasn’t unlocked the sector's true potential, especially for retail investors.

Here's a simplified representation of the real estate tokenization process.

  • Tap lucrative investment opportunities
  • Enjoy superior ROIs
  • Buy and sell properties from any part of the world
  • Acquire trophy assets
  • Decrease their transactional cost for real estate investments
  • Eliminate needless paperwork and middlemen
  • Drive investments with a high degree of trust
  • Ensure legal compliance, due diligence, and proof of ownership

Our Proven Real Estate
Tokenization Strategy


Transmission of payment orders or security transactions, incl. netting of transactions and the establishment of final positions


Transfer of ownership of securities and other financial instruments and of financial compensation to respective parties (i.e. buyer and seller)


Asset safekeeping ensuring that holdings at central securities depository (CSD) are always equivalent to the value of securities owned by custodian's customers

Asset servicing

Value-added services after trade execution (incl. collection of income, taxation services, general meetings voting, etc.)

Why choose GBS for your
Real Estate Tokenization

  • At Global Blockchain Solution, we don’t merely have an in-depth knowledge of blockchain technology. We also come equipped with extensive expertise in the real estate sector, project management, distribution, and marketing. We have a deep understanding of the factors that can make or break your project and its ultimate success.

  • With our cross-disciplinary team, we provide you with integrated solutions. In other words, we take your project's end-to-end ownership and manage its success. We don’t leave room for excuses… we simply deliver results backed by data.

Why choose GBS for your Real Estate Tokenization

Frequently Asked Questions

Tokenization is the process of converting an asset, such as a piece of real estate, into a digital token. These tokens can then be traded on a blockchain-based platform, allowing investors to buy and sell the asset with no traditional middleman, such as a bank or broker.

Tokenization works by creating a digital token that represents an asset. This token can be stored on a blockchain-based platform and traded by investors.

Tokenization can offer a number of benefits, including increased liquidity, enhanced accessibility, and reduced transaction costs.

Any type of asset can be tokenized, including real estate, commodities, and even art.

Tokens can be bought and sold either directly or in a secondary market such as exchanges.

A blockchain-based platform is a decentralized platform that uses blockchain technology to track and store information.

Blockchain technology is a distributed-ledger-based system that allows for secure, transparent, and tamper-proof transactions.

A digital token is a digital representation of an asset, such as a piece of real estate. These tokens can be stored on a blockchain-based platform and traded by investors.

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