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Blockchain investments are disrupting the real estate industry: Report

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The Cointelegraph Research TerminalIs a leading provider of premium databases and institution-grade research on blockchain and digital assets, and has added new reports to its expanding library from industry leaders in tokenization.

Reports from SecurityToken Market and its sister company, SecurityToken Advisors, cover the rapidly emerging asset-backed real estate tokenization industry. It has information on the evolving changes in the industry and is essential for companies and companies with portfolios that include real estate.

The tokenized real estate industry is growing rapidly in the current market frenzy. Demand for blockchain-based investment opportunities backed by real-world assets is increasing as investors seek safer investments using emerging technologies. Real estate assets make up more than 40% of the industry’s pipeline of specific technology providers and could be the largest and most “urgent” sector when it comes to providing future security tokens.

Download the full reportComplete with charts and infographics from Cointelegraph Research Terminal

To understand what the 2022 landscape will look like, the report highlights notable developments and deals. This sector of tokenization provides investors with access to high-performance, fragmented investments that can be purchased in cryptocurrencies and traded in the secondary market.

Emerging technologies disrupt traditional markets

The existing tokenized real estate market can be divided into the following tranches: Blockchain securitized assets, fully tokenized but not actively traded in the secondary market, fully tokenized and actively traded in the secondary market.

Historically, real estate has been one of the least liquid asset classes, perhaps second only to hedge funds and private equity. This is not surprising as real estate often includes a wide range of planning requirements, cost constraints, asset management, safety requirements, and legal capabilities. These variables can take months or years to investors, with inevitable fees and other costs, depending on the size and size of the project.Since then Previous Cointelegraph Research Report, Real estate still accounts for 89% of the total pie of the securities market. However, the overall pie is growing. The number of commercial real estate transactions has increased from 2% a few months ago to 3% of the total number of security tokens invested.

With the tokenization of assets such as real estate, these historically illiquid investments can provide additional liquidity. By trading subdivided pieces of real estate, investors enjoy the yields generated by leasing and operating without the legal, time-consuming and tedious work associated with paper-based real estate investment and management. I can.

Market capitalization

Both residential and commercial real estate continue to grow in terms of capitalization over time. The market capitalization in June 2021 was only $ 65 million, while the market capitalization in May 2022 was $ 194 million. All security tokens have a market capitalization of over $ 16.4 billion, of which real estate is currently around 1.2%. This may seem small now, but it’s the fastest growing security token sector and needs to be closely monitored.

Survey report author

The security token market has been extensively researched for over four years. This coverage can be used to notify issuers, investors, and trading companies at multiple stages of the tokenization process.

Peter Gaffney is Head of Research at Security Token Advisors, a full-suite consulting firm that facilitates asset tokenization on behalf of clients, and develops a security token ecosystem that helps connect organizations and services.