Tokenization in real estate is an “inevitable next chapter in blockchains disruption of capital markets,” and could make major progress in the next five years, according to a report published by Moore Intelligence on Wednesday.
The emergence of new secondary markets for digital property assets might mean more liquidity, efficiency and lower costs for investors, the report noted.
“Tokenization has potential to drive down transactional costs and improve efficiency via the use of ‘smart contracts’ which can replace copious paperwork and laborious administration,” according to the report.
Institutional investors still largely remain on the sidelines waiting for more regulatory clarity, the report said.
Moore Global is the parent company of Moore Cayman, an auditing firm that published attestation reports for Tether, issuer of the largest stablecoin, USDT (0%).
“From an audit perspective, adding digital assets to a portfolio can be advantageous as blockchain technology can make transactions more transparent and trackable,” David Walker, managing partner of Moore Cayman, wrote in the report.
“Tokenization has potential to drive down transactional costs and improve efficiency via the use of ‘smart contracts’ which can replace copious paperwork and laborious administration,” the report said.
Texas-based commercial real estate marketplace Red Swan has tokenized $2.2 billion in real estate through security token platform Polymath, while it has another $4 billion in properties in the tokenization pipeline, CoinDesk reported in February 2020.