Example of Tokenized Real Estate: RealT

What is RealT?

RealT (https://realt.co/) is a U.S.-based platform that enables investors worldwide to buy fractional ownership in rental properties through blockchain-based tokens. The platform operates primarily on the Ethereum blockchain (ERC-20 tokens) and recently expanded to Gnosis Chain for lower transaction fees.

How It Works

1. Property Selection – RealT purchases rental properties in the U.S. and tokenizes them into digital assets.

2. Token Issuance – Each property is divided into multiple ERC-20 tokens, representing fractional ownership.

3. Investment & Purchase – Investors buy these tokens, gaining proportional ownership of the real estate asset.

4. Rental Income Distribution – Token holders receive rental income daily or weekly in the form of stablecoins (DAI, USDC).

5. Trading & Liquidity – Investors can sell their tokens on secondary marketplaces or peer-to-peer transactions.

Example Property on RealT

- 123 Main St, Detroit, MI

- Total Property Value: $150,000

- Token Price: $50 per token

- Total Tokens Issued: 3,000

- Rental Yield: ~10% annually

- Payouts: Investors receive daily rental income based on the number of tokens they hold.

Benefits of RealT Tokenization

✅ Fractional Ownership: Instead of needing $150,000 to buy a house, you can invest with as little as $50.

✅ Global Access: Investors from anywhere in the world can buy U.S. real estate without complex paperwork.

✅ Instant Transactions: Unlike traditional real estate, where transactions take weeks, RealT tokens can be bought or sold in minutes.

✅ Passive Income: Rental income is distributed automatically via smart contracts, reducing management hassles.

✅ 24/7 Trading: Tokens can be traded on Uniswap or private exchanges, improving liquidity compared to traditional real estate.

Challenges & Considerations

⚠️ Regulatory Compliance: U.S. securities laws require RealT investors to be verified (KYC/AML process).

⚠️ Market Volatility: Token prices may fluctuate based on demand, affecting resale value.

⚠️ Smart Contract Risks: Vulnerabilities in smart contracts could pose security risks.

Other Notable Tokenized Real Estate Projects

- Propy: A blockchain-powered platform enabling digital real estate transactions.

- Elevated Returns: Tokenized a $30M luxury resort in Aspen, Colorado.

- Landshare: Uses Binance Smart Chain for real estate tokenization.