Overview of Real Asset Tokenization
One of the emerging trends in the real-estate investment sector that also represents its convergence with blockchain technology is the real estate tokenization. Investors get to exchange fiat or crypto currency for digital “tokens”. In a nutshell, tokenization amounts to division of the physical asset into block-chain based security tokens. These tokens can be used to represent an underlying asset or shares of different assets. Fund owners can sell off the tokens to raise adequate capital more efficiently. It also helps in infusing liquidity, building transparency in investments and providing investors with easy access to private real estate investments.
We at Prolitus, have a proficient team of developers and experts to offer real asset tokenization services that involves due diligence, auditing and also legal services to bring down the liquidity costs by a good percentage
Make use of our custom tokenization solutions and platform for removing the obstacles posed by long, tedious processes and empower businesses to run smoothly at reduced operational costs. Talk to our experts for more information.
Process of Tokenizing Real Estate Asset
There are various steps involved with tokenizing the real estate and these are as follows:
Type of assets, shareholders, and jurisdiction and also the relevant regulations to be followed are some factors determining the final deal.
If you’re a property owner, there are various options available to help your investment grow. One option is becoming a member of real estate funds or taking part in REITs (Real Estate Investment Trusts).These are private investment groups that manage individual properties according to agreed-upon standards and guidelines; or participate as shareholders through REITs.
Choose the right blockchain network for creation of the token. A custody solution would help investors to store their tokens safely. Investors can get securitized tokens either by trading them on the most important secondary exchanges or primarily getting them issued.
A distribution plan is charted post the creation of the token as per the supplies available. To attract potential investors, accept multiple payment methods to help them purchase the token. The cap table is updated in real time so you can see how much money has been raised thus far.
Strategizing Real estate tokenization
Tokenization is poised to change the real estate investment space dynamically. The scope for building strategies by blockchain developers, legal and financial advisors is huge when it comes to real estate tokenization. At Prolitus, we would simplify the legal complexities, ensure compliance and resolve practical challenges with expertise from our legal, financial and blockchain consultants. Our experts will help you raise funds within the regulatory framework , thus making the process of toeknization simple. They also make sure that fundraising activity meets the necessary regulations.
Security Token Offering (STO) or a Tokenized Asset Offering (TAO)
The sale of a security token to prospective investors is referred to as an Security Token Offering (STO) or Tokenized Asset Offering ( TAI) . It essentially implies the transferral and conversion from traditional ownership models in favor of digital ones using cryptocurrencies.
An example of an STO would be in cases where owners sell part ownership in their company’s debt for cryptocurrency payments which can then be cashed out at any time without any additional fees attached because it has been converted into real-world assets. Investors can get ownership in a property with the purchase of a token. Future appreciation of the asset is likely to yield greater returns for asset owners. Moreover, the token empowers them to decide on how to market their STO in many different ways. This also facilitates streamlining of transactions and reducing the discounts.
The Prolitus team would help the asset-backed real estate industry in legal, technological and auditing processes to raise sufficient funds. The regulations are embedded in a smart contract and what more – we are compliant with numerous jurisdictions. Contact us today to get help with auditing, legal services. The blockchain is a disruptive technology that will change the way we do business. The blockchain technology is being used in many industries, including finance and insurance. This has led to a reduction of illiquidity discounts for assets based on the new innovations that will change how we do business forever!
Tokenization platform features for real estate investors
We will provide a property-backed token issuance platform that allows real estate developers and investors to take part in the cryptocurrency space and tokenize their assets – turning them into tradable security tokens while also providing safety by shielding both buyers/sellers from risk! You can tokenize your commercial or residential asset with great ease. There are many different blockchains that tokens can be issued on, but the most popular ones at this point in time seem to be platforms such as Ethereum, Stellar and Hyperledger.
Facilitate efficient property management
Digital stock certificates present
Dividend payment to investors
Quick peer to peer transactions
Recovery for lost tokens
Non – fungible tokens representing ownership of land
Forums for discussions
Integrated voting system
Integration with payment service providers
Advantages of Digitizing Real estate Through Prolitus
With real estate tokenization, you can have adequate liquidity that will better allow you to perform efficient buying and selling. The conversion of property values into cash is made quickly for us so it’s only natural we want this same power with all other transactions done in our lives!. You can get help with quick conversion of property values into cash.
Real estate tokenization allows fractional ownership where there isn’t a sole owner but the values of shares are divided between multiple owners. It reduces the distress upon an individual to bear all the challenges by themselves.
Trade around the globe made possible of trust
With real estate tokenization, you could trade in property with anyone in the world, thus helping you to expand your business vision, opportunities and also helping in reap profits in huge numbers.
Direct peer to peer transactions
Tokenizing real estate assets through our platform will remove all intermediaries and enable direct peer-to-peer interactions. Direct interaction also helps in mitigating the risks and further brings down the overall cost
Immutability and interchangeability assured
With the integration of blockchain into real estate tokenization platform, users can be guaranteed immutability. Transactions cannot be interchanged and users need not worry about any kind of asset information getting tampered or changed.
Quick, efficient transactions
Tokenization helps in doing away with tedious real estate process and helps with quick peer-to-peer transactions from anywhere in the world.
Tokenization simplifies the management of assets. Partnering with the third-party exchanges can help in tracking the executed secondary transactions on a real-time basis. It also assures investors of prompt returns and helps them take part in governance of the platform through their voting rights and decision making powers.
We facilitate sale of land pieces at lower prices: Due to the fractionalization of property, tokens can be subdivided in many parts and it also allows the sale at lower prices. Small investors can take part in it while big ones can efficiently diversify their portfolio.
Scope of Real Estate Investments with Prolitus’s Tokenization
Customers can benefit from the legally compliant structure that is supported on numerous blockchain networks. We are a team of experienced and highly driven experts that can help you securitize real assets and raise funds faster and reach more and more investors. Leverage the following benefits offered by Prolitus to tap the immense possibilities of real estate tokenization.
Blockchain and smart contract development experts
One-stop shop for real estate token solutions
Providing tokenization solutions in line with the needs of the market
Proficient team of legal, technical, technological and financial advisors
Robust token structure
Why Choose Prolitus As Your Real Estate Tokenization Partner?
We convert your mission and vision into reality by delivering the best blockchain in healthcare products.
Blockchain technology is something we thrive on. Our solutions leverage the latest tech to build outstanding blockchain in healthcare solutions.
More Time To Market
We follow a clear, coherent, and flexible roadmap that helps us deliver the best solutions.
Reduced Development Cost
We don’t charge high fees as we cut down on unnecessary processes and do what’s necessary for great product development.
We provide 24/7 support to solve your product-related issues and provide you with a seamless experience.