Real estate is an asset class ready to be integrated with blockchain technology. Security tokens cover many categories, but real estate dominates among them. The Cointelegraph research terminal hosted a 33-page report from the Security Token Market, a data and media company, that outlines the current state of real estate security tokens and the potential for their further adoption.

If you are in real estate or have a portfolio that includes real estate, this report contains the information you need to know about this evolving industry shift.

Click here to purchase the full report with graphs and charts.

Blockchain technology is changing the real estate industry
The popularity of non-fungible tokens (NFTs) has grown in recent years and is already reaching new heights in 2021. One negative pressure on NFTs is that they are only used for rasterized JPEG images and do not have “real” images. Applications. Those familiar with blockchain and the crypto space know that the use of NFTs goes beyond cut monkeys and Shiba Inu memes.

The report looks at the use of blockchain projects that are currently tokenizing real estate. The report provides an overview of the current state of the primary tokenized real estate market, 14 active projects operating in the space, and how these real estate tokens are traded in the secondary markets.

The Ideal Application of Blockchain Technology
The use of security tokens spans a wide range of industries from art, wine, and insurance, but none of these are the fast-growing real estate sector, which accounts for 89% of all security tokens in circulation. Breaking it down by another 89%, residential property accounts for 87% and commercial property for just 2% of what is traded as a security token. The global real estate market has reached approximately $3.38 trillion in 2021, and with the increase in the number of different applications using blockchain technology, it is not surprising that the cryptocurrency revolution has found its way into real estate.

Ownership and ownership are well suited to blockchain applications where three-way accounting (who sold, who bought, and who signed) is directly integrated into the systems that make up the exchange. The verifiability and lack of trust in the technology make it ideal for removing the many different transaction barriers that hamper traditional real estate.

An example of this is property seekers and the process of insuring them. Lenders and homebuyers spend time and money searching for properties to make sure the seller has the legal ability to transfer ownership to the buyer. With the token element, it becomes an easy task for blockchain exploration. This is just the tip of the symbolic real estate iceberg. Buy the report to find out more.

Grows and appears, but grows
In 2019, the first property was marked as an ERC-20 token on the Ethereum blockchain. While this may seem like a slow start to adoption, it should be noted that the real estate industry is heavily regulated. Combine this factor with the growing decentralized blockchain industry and you have a recipe for slow growth – at least in the first place.

The report shows that the volume of actively traded real estate tokens increased by 107% in 2021 compared to the previous year. Active projects include a number of different aspects including commercial hotels, private property, Section 8, affordable housing, IRA blockchain purchase interests, and insurance. As shown in the diagram below, most of the activity is in the residential area compared to the commercial area.

Tokenization adds an element of liquidity to the real estate market, which has historically been a known problem for the sector. Investors can also take advantage of this by trying to eliminate revenue generation from different hashing of properties on the blockchain, removing complex and costly barriers to entry.

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Blockchain Ownership Gaining Momentum
The Real Estate Security Token Market Report is a critical read for serious investors. Both former users and those who are not aware of this change can benefit from being up to date with the latest developments covered in this report. All industries are changing, and real estate is no exception. The information provided in this report will help all real estate professionals maintain their competitive edge in the market.

Source: CoinTelegraph