Real estate tokenization as an alternative investment solution

Aleksander Berentsen and Marina Markheim

MPRA Paper from University Library of Munich, Germany

Abstract: Tokenization refers to the process of creating a virtual representation of a real asset by creating fungible tokens which enables fractional ownership. If such tokens are created on a public and permissionless blockchain such as the Ethereum blockchain, they are immediately tradeable worldwide 24/7. Established token standards and immediate settlement are further benefits of this novel technology. Tokenization has the potential to remedy the illiquidity problems of real estate investments. However, outdated regulatory frameworks and regulatory uncertainties currently still limit a broad adoption of the technology.

Keywords: blockchain technology; smart contracts; fractional ownership; tokenization of real estate; security token; token regulation (search for similar items in EconPapers)
JEL-codes: G19 R31 R32 R39 (search for similar items in EconPapers)
Date: 2022, Revised 2021
New Economics Papers: this item is included in nep-pay and nep-ure
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