When bricks meet bytes: does tokenisation fill gaps in traditional real estate markets?

Giulio Cornelli

No 1311, BIS Working Papers from Bank for International Settlements

Abstract: Using novel US data from multiple platforms over 2019–25, I show that real estate tokenisation fills gaps in traditional markets. The supply of tokenised real estate is driven by pricing, demand, liquidity and supply in the physical property market. These factors affect the supply of traditional real estate properties and Real Estate Investment Trust (REIT) portfolios differently. Areas with limited access to credit see more rapid growth in tokenised properties, suggesting tokenisation may bridge gaps in access to real estate. Finally, to test whether tokenisation can address liquidity gaps, I analyse trading activity around natural disasters as an exogenous liquidity shock. Trading in tokenised properties rises by 35% cumulatively over the two days following a disaster. This suggests that tokenisation can preserve liquidity when it typically dries up, but only if platforms provide buyback features, which comes with higher insolvency risk.

Keywords: real estate; tokenisation; tokenised real world assets; tokenised housing; liquidity (search for similar items in EconPapers)
JEL-codes: D02 G12 O33 R31 (search for similar items in EconPapers)
Date: 2025-11
New Economics Papers: this item is included in nep-pay
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