Real estate and finance company Elevated Returns announces that it will tokenize $1 billion worth of property on the Tezos blockchain.
The company made the announcement via a press release earlier today. Elevated Returns, founded by New York-based Belgian entrepreneur Stephane De Baets, previously became a first mover in the space with the partial tokenization of the St. Regis resort in Aspen, Colorado as part of its sale last year.
What is Tokenization?
Tokenization is a process whereby some form of asset – in this case, real estate, is converted into tokens which can be moved, recorded or stored on a blockchain network. In essence, tokenization converts the stored value in one physical or intangible object into a token that can be manipulated on a blockchain.
What are the Implications of Tokenization for Real Estate?
Many people have an interest in real estate but it’s a cumbersome asset to own and to sell. Some 8.25% of American householders are classed as accredited investors, according to cloud-based and AI-enabled blockchain spend management company aXpire. There is a significant barrier to entry for ordinary investors when it comes to real estate. With tokenization, real estate converts from a somewhat illiquid asset to a liquid asset.
The fractional ownership aspect of real estate tokenization opens up the market to a much wider investing public. The result potentially, could lead to greater access for ordinary investors to take a stake in assets that they ordinarily wouldn’t be able to purchase through existing means.
Additionally, it facilitates access to real estate investment in overseas markets that the investor normally wouldn’t have access to. From the point of view of the real estate developer, it increases the likelihood of getting a project funded and potentially, earlier access to capital.