Chapter 4
Real Estate Tokenization
Real estate tokenization splits property ownership into tradable shares — rental yield distributed on chain, capital appreciation tied to property value and market sentiment. It promises access to an illiquid asset class with blockchain transfer mechanics.
Investors depend on off-chain legal enforcement — jurisdiction and securities registration are critical. Verify property management, vacancy rates, and fee deductions in offering documents, not token marketing alone.
Rental income often flows to token holders pro-rata via stablecoin distributions. Due diligence spans the asset, the operator, and the legal wrapper — not just the token contract address.