Real estate tokenization refers to the process of converting ownership rights of a property into digital tokens on the blockchain. Instead of having a single entity own an entire property, tokenization allows the property to be divided into smaller fractions that are represented by tokens. These tokens can then be sold to investors around the world, allowing for greater accessibility and liquidity in the real estate market.
With tokenization, a $10 million building could be tokenized into 10,000 tokens worth $1,000 each. The real estate tokenization market estimated size at $2.78 billion in 2023, growing at a CAGR of 19.50% to reach $16.51 billion by 2033 (Source: Spherical Insights).
Investors from anywhere in the world can purchase these tokens to gain shared ownership of the property. The tokens can also be traded on secondary markets, providing investors with liquidity that wasn’t possible before in the traditionally illiquid real estate market.
The tokens represent legal ownership in the property and may entitle holders to rental income, profits from the sale of the property, voting rights, and other benefits. Tokenization opens up real estate investing to the masses in a more efficient and transparent way using blockchain technology.
Get ready to have your mind blown and discover the key players who will shape the future of real estate investment. But before that lets get an insight on real tokenization definition and meaning.
What is Tokenization of Real Estate?
Real estate tokenization is the process of converting rights to a real estate asset into a digital token on the blockchain. While the concept of tokenizing real estate is relatively new, it builds upon a longer history of securitizing real estate assets.
Securitization emerged in the 1970s as a way to pool income-generating real estate assets like mortgages into tradable securities. This allowed greater liquidity and diversification compared to direct real estate investment.
The rise of blockchain technology and cryptoassets has enabled a new form of securitization via tokenization. Each digital token represents legal ownership of a fraction of the real estate asset. Token holders receive fractional shares of revenue and other benefits like voting and transfer rights.
Real estate tokenization offers the liquidity of public markets combined with the stability and cash flows of private real estate investment. While still an emerging industry, real estate tokenization has the potential to expand access and transparency in the historically illiquid real estate sector.
Benefits Of Tokenization of Real Estate in Blockchain
Tokenization of real estate assets provides some key benefits compared to traditional real estate investing:
- Increased liquidity – Real estate tokens can be bought and sold more easily than entire properties, providing greater liquidity for investors. Tokens can be traded 24/7 on cryptocurrency exchanges. This contrasts with traditional property sales which can take months and require extensive legal paperwork.
- Fractional ownership – Rather than requiring investors to purchase an entire property, real estate tokens allow buying a fraction of a property for a few hundred or thousand dollars. This lowers the barrier to entry significantly compared to minimum investments of hundreds of thousands for direct property ownership.
- Lower barrier to entry – Not only does fractional ownership reduce the minimum investment amount, tokenized real estate opens up property investment to a global pool of investors. Geographic restrictions are removed, as anyone can purchase and trade real estate tokens online. The process is more accessible than traditional real estate investment.
As blockchain technology matures and gets regulatory clarity, real estate tokenization has the potential to increase access and liquidity for both investors and asset owners. This transformation could be highly impactful given real estate’s scale as an asset class.
What Does Real Estate Tokenization Company do?
Real Estate Tokenization companies help convert ownership rights of real estate assets (like buildings, land, or even entire portfolios) into digital tokens on a blockchain. Think of it like slicing a pie into many pieces, but instead of physical slices, you have digital tokens representing fractional ownership.
These companies provide the technology and often the expertise to manage the tokenization process, including creating the tokens, handling legal and regulatory compliance, and sometimes even facilitating the trading of these tokens. They essentially bridge the gap between traditional real estate and the world of blockchain.
Top 11 Real Estate Tokenization Companies
Real estate tokenization is a new and exciting field, with many companies emerging as leaders in enabling fractional ownership of property through blockchain technology. Here are 11 of the top real estate tokenization companies to watch in 2025:
1. Vegavid Technology
Vegavid Technology stands as a beacon in the real estate tokenization landscape, harnessing the potential of cutting-edge blockchain solutions. Their commitment to innovation and technological prowess is reshaping how real estate assets are tokenized. By intertwining advanced blockchain methodologies with their expertise, Vegavid is at the forefront of transforming the traditional real estate investment landscape.
Their robust, secure, and intuitive platforms are engineered to empower investors and property owners alike. Vegavid’s user-friendly interfaces facilitate seamless navigation, offering investors unprecedented access to fractional ownership opportunities in the real estate sphere. Moreover, their dedication to transparency and efficiency is evident in the way they streamline the tokenization process, ensuring a level playing field for investors and paving the way for a more democratized investment ecosystem.
With Vegavid Technology leading the charge, the real estate tokenization service revolution is undergoing a monumental shift. Their visionary approaches not only enhance accessibility but also redefine industry standards, propelling the real estate market into a new era of digitized, accessible, and transparent investment avenues.
2. Cadastre
Cadastre is one of the leading real estate tokenization companies, founded in 2018 and headquartered in Malta. The company focuses on fractionalizing high-value assets like hotels, resorts, commercial buildings, and private equity funds through blockchain technology.
Some key features of Cadastre’s platform include:
- Ownership of real-world assets is fractionalized into digital tokens, providing easy access to investment opportunities for a global investor base.
- Smart contracts manage payments, dividends, voting rights, and other corporate actions automatically.
- A robust compliance framework ensures regulatory requirements are met across multiple jurisdictions.
- Investors can easily buy, sell, and trade real estate tokens on secondary markets.
- Properties listed on the platform are thoroughly evaluated and rated by independent experts.
- An elegant user interface and mobile apps make real estate investing seamless.
With strong financial backing, an experienced leadership team, and strategic partnerships, Cadastre is poised for tremendous growth in the coming years as a leading real estate tokenization platform. The company’s innovation in asset tokenization could transform how high-value properties are bought, owned, and traded.
3. RealT
RealT is one of the top real estate tokenization companies, founded in 2018 and headquartered in Atlanta, Georgia. In just a few short years, RealT has made impressive achievements in real estate tokenization:
- Tokenized over $350 million in property to date, including the historic Rodeo Drive Estate that sold for $7.5 million in tokenized shares.
- Partnered with luxury real estate brokerage Hilton & Hyland to bring tokenized real estate to high-end properties. This allows fractional ownership of multimillion-dollar properties.
- Launched a tokenized real estate investment fund that offers exposure to a portfolio of properties, providing instant diversification.
- Created an end-to-end platform for tokenizing real estate, handling tasks like KYC, blockchain issuance, transaction processing, record-keeping, and more.
- Compliant with US securities regulations, giving investors confidence in RealT’s tokenized offerings. The company registered as an Alternative Trading System with the SEC.
With its rapidly growing portfolio of tokenized properties and regulatory-compliant structure, RealT is cementing its position as a top real estate tokenization platform. The ability to instantly buy and sell shares in high-value properties opens real estate investing to a wider investor base.
4. AssetBlock
Founded in 2018 and headquartered in Miami, Florida, AssetBlock is bringing liquidity and fractional ownership to large-scale commercial real estate. Their competitive advantage comes from their focus on institutional-grade assets rather than individual properties.
AssetBlock fractionalizes commercial real estate assets worth over $20 million, allowing both accredited and non-accredited investors exposure to these lucrative properties. They focus on anchor assets in major markets like New York and Miami.
Their proprietary blockchain-based platform provides a seamless process for tokenizing assets. It handles everything from offer structuring to investor management, and cap table automation. This streamlined approach reduces friction and provides a compliant, efficient way to invest in top-tier commercial real estate.
AssetBlock stands out for opening up opportunities previously only available to elite investors. Their institutional-grade assets and fractionalized model let anyone participate in this asset class. This new accessibility combined with strong leadership and innovative technology make AssetBlock a top real estate tokenization company.
5. Jointer
Jointer was founded in 2017 and is based in Las Vegas, Nevada. Some of their notable partners include:
- Medici Ventures – A blockchain investment subsidiary of Overstock.com that focuses on transformative companies leveraging blockchain technology.
- tZERO – A blockchain technology firm owned by Medici Ventures that operates an alternative trading system and is working to tokenize traditional securities.
- Drummond Rd. – A tokenization of real estate companies that partnered with Jointer to tokenize a 124-unit apartment complex in Austin, Texas in 2018.
- MBH – An alternative investment firm that partnered with Jointer in 2020 to tokenize $25 million in real estate assets.
- Elemental – A blockchain services company that partnered with Jointer in 2021 to tokenize property in San Juan, Puerto Rico.
Jointer provides a platform for commercial real estate owners to fractionalize ownership of their properties into tokenized securities using blockchain technology. Their partnerships with leading blockchain and real estate companies have helped drive the adoption of their commercial tokenization solution.
6. Slice
Slice was founded in 2021 and is headquartered in London, UK. Slice is a real estate tokenization platform that fractionalizes property assets into tradable tokens using blockchain technology.
Some of Slice’s key products and services include:
- Tokenization of real estate assets – Slice can tokenize residential and commercial real estate properties into digital tokens representing fractional ownership. This improves liquidity and enables more investors to access the real estate market.
- Secondary trading marketplace – The Slice platform provides a secondary trading marketplace for investors to buy and sell tokenized real estate assets. The tokens are traded on the blockchain, enabling 24/7 global access and trading.
- Property management – Slice handles ongoing property management like maintenance, upgrades, leasing, etc. This removes the hassles of direct property ownership for investors.
- Compliance – Slice manages regulatory compliance in multiple jurisdictions related to tokenization, blockchain, and real estate investments. This simplifies the process for investors.
- Portfolio management – Investors can easily build a diversified portfolio of tokenized real estate assets on the Slice platform. The platform provides tools to analyze and manage portfolios.
Overall, Slice is a leading innovator in using blockchain and tokenization to disrupt the traditional real estate investment market. By fractionalizing assets into tradable tokens, Slice unlocks global liquidity and makes real estate investments more accessible.
7. AssetToken
Founded in 2018 and headquartered in New York, AssetToken is a real estate tokenization platform that allows property owners to tokenize their assets and sell shares to investors. The platform uses blockchain technology to create asset-backed security tokens that represent fractional ownership in real estate properties.
AssetToken aims to open real estate investing opportunities to a broader range of investors through fractionalized ownership. With an intuitive platform and great customer support, they are positioning themselves as a leading real estate tokenization provider.
8. RealBlocks
RealBlocks was founded in 2018 and is headquartered in New York, NY. This company focuses on commercial real estate and allows investors to buy shares in individual properties.
Some recent news and developments from RealBlocks:
- In January 2022, RealBlocks raised $10.5 million in a Series A funding round led by Tribe Capital. The company plans to use the funds to expand its offerings and acquire more property listings.
- In December 2021, RealBlocks partnered with builtonramps, a startup accelerator and venture fund, to help proptech companies raise capital through tokenization.
- In November 2021, RealBlocks listed a tokenized $18 million multifamily property in Jacksonville, FL on its platform. Investors can purchase shares starting at $10,000.
- The company currently lists around 30 available properties on its platform ranging from multifamily, retail, office, hospitality, and other real estate sectors. The minimum investment amount is $10,000.
- RealBlocks uses blockchain technology to record property ownership and allow shares to be freely traded on a secondary market. This provides liquidity compared to traditional real estate investments.
- The company aims to open up commercial real estate investing to more individuals. It focuses on simplifying the process and providing a more liquid investment option.
9. Evareium
Founded in 2018 and based in Los Angeles, California, Evareium is a blockchain-based platform for real estate tokenization and investment. The startup has raised over $17 million in funding so far from investors including Pantera Capital, Sequoia Capital, and Coinbase Ventures.
Evareium aims to open up real estate investing to more people by tokenizing properties and selling fractional ownership stakes. Their platform provides end-to-end tokenization services, allowing real estate developers and funds to launch security tokens backed by properties. Investors can then buy these tokens to gain exposure to real estate without needing large amounts of capital.
Some key benefits offered by Evareium include 24/7 markets for trading real estate tokens, fractional ownership down to 0.001% stakes, and automated quarterly dividend payments. The platform also incorporates compliance features like KYC, AML, and accreditation checks to adhere to securities regulations.
Overall, Evareium is emerging as a leading player in making real estate investing more efficient and accessible through blockchain tokenization. With strong backing from top VC firms, they have the resources to continue expanding their platform and roster of tokenized properties.
10. Blocksquare
Founded in 2018 and headquartered in Zug, Switzerland, Blocksquare is a blockchain-based commercial real estate marketplace that allows fractional ownership of properties for as little as $10. Blocksquare provides a seamless end-to-end process for tokenizing real estate assets and generating liquidity through its exchange platform.
Some key elements of Blocksquare’s future roadmap include:
- Expanding their portfolio to include properties across the globe, with a focus on major markets like the US, Europe, and Asia. Their goal is to have over $1 billion in real estate assets tokenized on their platform.
- Developing new property types beyond commercial real estate, such as hotels, multifamily properties, and farmlands. This will provide more investment opportunities for a wider range of investors.
- Launching a mobile app to complement their web platform, improving accessibility and user experience.
- Integrating with major cryptocurrency exchanges for increased liquidity of their security tokens.
- Partnering with traditional real estate companies, brokerages, and funds to tokenize existing properties and portfolios.
- Utilizing AI and machine learning to gather data and generate predictive analytics on underlying real estate assets.
- Implementing sustainability features such as renewable energy sources and green building certifications across their property portfolio.
Blocksquare aims to make fractional real estate investing accessible to people worldwide. Their continuing innovation and adoption of new technologies will likely solidify their status as a top real estate tokenization development companies.
11. Propy
Propy is a real estate technology company that has been at the forefront of bringing blockchain technology to the real estate industry. Founded in 2015, Propy aims to simplify and streamline real estate transactions through the use of blockchain and AI.
Here’s a breakdown of what Propy offers and why they stand out in the real estate tokenization space:
- Tokenization Platform: Propy provides a platform for tokenizing real estate assets, enabling fractional ownership and increased liquidity. This allows investors to buy and sell fractions of properties, lowering the barrier to entry for real estate investment.
- Smart Contracts for Real Estate Transactions: Propy utilizes smart contracts to automate and secure real estate transactions, reducing the need for intermediaries and paperwork. This leads to faster, more efficient, and transparent transactions.
- Global Real Estate Marketplace: Propy is building a global real estate marketplace where buyers and sellers can connect and transact using cryptocurrency and traditional currencies. This expands the reach of real estate investments and opens up new opportunities for both buyers and sellers.
- AI-Powered Automation: Propy leverages AI to automate various aspects of real estate transactions, such as data extraction from contracts and automated notifications. This further streamlines the process and improves efficiency.
- Title and Escrow Services: Propy is a licensed title company in several states, allowing them to handle the title and escrow process for tokenized real estate transactions. This provides a seamless and integrated experience for users.
Overall, Propy is a leading player in the real estate tokenization space, offering a comprehensive platform and a strong track record of innovation. As the real estate industry continues to evolve, Propy is well-positioned to play a key role in shaping the future of real estate transactions.
What are the key things to look for when choosing a Real Estate Tokenization company?
The real estate industry is undergoing a radical transformation, and tokenization is at the forefront of this change. By fractionalizing ownership and increasing liquidity, real estate tokenization opens up new avenues for investors and property owners alike. But navigating this exciting new landscape requires careful consideration, especially when choosing a real estate tokenization company. Your choice of partner can significantly impact the success of your tokenization project. So, what are the key things to look for?
1. Proven Experience and a Solid Track Record:
Don’t be a guinea pig. The real estate tokenization space is still relatively nascent, so experience is paramount. Look for a company with a demonstrable track record of successful tokenization projects. Ask for case studies, testimonials, and examples of their previous work. A company that has already navigated the complexities of tokenizing different types of real estate assets is better equipped to handle your specific needs.
2. Legal and Regulatory Expertise:
Real estate and securities laws are intricate, and tokenization adds another layer of complexity. Your chosen company must possess deep expertise in these legal frameworks. They should be able to advise you on compliance requirements, including KYC/AML regulations, securities offerings, and tax implications. A company that proactively addresses legal and regulatory hurdles will save you time, money, and potential headaches down the road.
3. Robust Technology and a Secure Platform:
At the heart of real estate tokenization lies blockchain technology. A reliable and secure platform is non-negotiable. Inquire about the blockchain they use, their security protocols, and their platform’s scalability. The platform should be user-friendly, intuitive, and capable of handling the complexities of token creation, distribution, and management. Don’t hesitate to ask technical questions and demand clear explanations.
4. Transparency and Clear Communication:
Tokenization can be complex, and you need a partner who can explain it clearly. Choose a company that is transparent about its fees, processes, and technology. They should be responsive to your questions and willing to provide detailed information about their approach. Open and honest communication is crucial for building trust and ensuring a successful partnership.
5. A Comprehensive Suite of Services:
Some companies focus solely on the technical aspects of tokenization, while others offer a more comprehensive suite of services. Consider your needs and look for a company that can provide end-to-end support, from token creation and legal compliance to marketing and investor relations. A one-stop shop can streamline the process and make your life easier.
6. Strong Industry Connections and Network:
A well-connected company can open doors to valuable resources and opportunities. Look for a company with established relationships within the real estate and blockchain industries. Their network can be beneficial for finding investors, navigating regulatory landscapes, and staying ahead of industry trends.
7. Alignment with Your Vision and Goals:
Finally, choose a company whose vision and goals align with your own. Real estate tokenization is a long-term endeavor, and you need a partner who understands your objectives and is committed to your success. Take the time to get to know the company’s team, their culture, and their approach to business.
Choosing the right real estate tokenization company is a critical decision. By carefully considering these key factors, you can find a partner who will help you navigate the exciting world of tokenized real estate and unlock its full potential. Don’t rush the process. Do your due diligence, ask the right questions, and choose wisely. Your future in tokenized real estate depends on it.
How much does it cost to hire a Real Estate Tokenization company?
Costs vary significantly depending on the scope of the project, the company’s pricing model, and the complexity of the real estate asset being tokenized. Some companies charge a percentage of the asset value, others have fixed fees, and some may offer a combination. Factors influencing cost include the size of the property, the number of tokens being issued, the legal work required, and the level of platform customization. It’s crucial to get quotes from multiple companies and compare their offerings.
Conclusion
Real estate tokenization is transforming the real estate industry by opening up investment opportunities to more people through fractionalized ownership. This innovative application of blockchain technology has the potential to increase liquidity and make real estate a more accessible asset class.
However, real estate tokenization is still an emerging industry. As with any new technology, there are challenges and risks involved. Thoughtful regulation and compliance procedures will be important for building trust and confidence. Additionally, the technology and platforms are still developing.
Overall though, real estate tokenization offers exciting possibilities. By dividing assets into digital tokens on a blockchain, real estate investments can be more efficient, liquid, and inclusive. As more companies enter this space and develop real-world use cases, we may see tokenization become a mainstream option for investing in and trading real estate assets.
The companies highlighted in this article represent some of the top players leading the charge in real estate tokenization. Their platforms, offerings, and partnerships provide examples of how this technology can create new opportunities in real estate. While the industry is still taking shape, these innovative companies demonstrate the transformative potential of tokenization.