Landshare Team
The advent of blockchain technology heralds a seismic shift in the real estate sector, promising unparalleled liquidity and accessibility through tokenizing real-world assets (RWAs). Traditionally we have seen the real estate sector as an illiquid asset class with high entry barriers but now it is reimagined by integrating on-chain secondary market trading of RWA tokens.
According to CoinMarketCap, the market cap of real-world asset (RWA) tokens stands above $53.7 Billion. This substantial market cap shows us that the RWA sector in the crypto market is proliferating. The high pace of growth ensures that it will soon overlay a notable portion of the traditional real estate market.
We can see how the RWA narrative has taken crypto space by the storm, and it has made a massive leap in the financial landscape. It is making tangible financial assets such as real estate investments more fluid, transparent, and accessible to a broader spectrum of investors. The amalgamation of RWA tokens with secondary market trading brings unprecedented advantages for you in the highly lucrative real estate investment sector.
We can understand secondary market trading as trading of assets among buyers and sellers rather than with the companies or projects. A budding project in the crypto space launches a token through either an ICO, IEO, or IDO, which primarily trades native tokens in exchange of raising funds from investors. After the launch, when these tokens are up for trade among traders, it becomes a secondary market, and the trading becomes secondary market trading.
NYSE and NASDAQ are, for instance, secondary market trading platforms, as they offer you to trade or invest in stocks. On the same note, trading on both centralized and decentralized crypto exchanges falls within secondary market trading. We can trade Bitcoin on crypto exchanges such as Coinbase or buy or sell Ethereum on decentralized exchanges like Uniswap.
Real-world assets (RWAs) refer to objects possessing tangible or intangible value, including but not limited to gold, fine art, and real estate. In 2024, the scope of these assets linked to the real world is set to broaden beyond the confines of physical space. The advancement of blockchain technology makes the expansion possessive, providing a unique on-chain identity to traditional assets. This innovation creates a novel concept known as the real-world asset token.
The global real estate market is over $630 Trillion today and is continually growing. It is expected to hit $729 Trillion by 2028. This also makes real estate investments one of the most lucrative investment vehicles due to huge returns, but they do come with their own shares of hassle.
The real estate market is illiquid, and even a single transaction of buying or selling a property could take weeks or even months. In addition, it takes time to complete the extensive paperwork required for a transaction, making the whole process inefficient.
With the introduction of real estate-backed RWA tokens, real estate property transactions can now be carried out faster, more transparently, and more efficiently. There's more to the phenomenon than just that; let's delve into the benefits of trading RWA tokens in secondary markets.
As mentioned above, the RWA crypto tokens already have a market cap of billions of dollars. Several projects are spearheading change within the space with unique propositions and offerings.
Landshare ($LAND) is among the rare projects that offer real estate-backed RWA tokens: Landshare RWA ($LSRWA). $LAND is the native utility and governance token that takes care of transactions and other operations over the platform.
The RWA token represents the unit of the pool of real estate properties 1:1. Landshare makes it possible for you to step into tokenized real estate investments with as low as $1. Landshare RWA tokens are playing a crucial role in changing the real estate investment landscape with unique propositions and offerings.
Landshare is actively tackling the challenge of the lack of secondary trading options for most security tokens with a comprehensive three-pronged approach. The strategy includes on-chain valuations, ensuring transparency with up-to-date property valuations and cash reserves; fixed price liquidity, maintaining token value alignment with the underlying assets through controlled sales; and DEX Trading, aiming to foster a vibrant secondary market for LSRWA tokens by enabling unrestricted trading.
The upcoming listing of LSRWA Tokens on the DS Swap Security Token DEX is a significant milestone in this endeavor for Landshare. The on-chain real estate trading by offering instant settlements, no transaction fees, and the flexibility to trade against LAND or stablecoin pairs will be possible and it's a paradigm shift in making.
The introduction of the DS Swap listing is expected to amplify trading dynamics by providing zero-fee liquidity pools, facilitating arbitrage opportunities, and allowing for higher trading limits. Landshare takes a leap in resolving the liquidity issues with the DS Swap Security Token DEX listing, promising a more fluid and accessible market for real estate tokenization.
Further enriching the ecosystem, Landshare plans to propose an LSRWA-USD liquidity pool, akin to the successful LAND-BNB LP, to incentivize LSRWA holders with rewards for contributing to liquidity. This initiative not only aims to elevate LSRWA's utility but also to broaden the trader base, mitigate price volatility, and ensure a more stable and liquid market environment.
The Path Forward: Innovation and Opportunities
The tokenization of real estate assets paves the way for innovative investment models and financing mechanisms, from crowdfunded investments to yield-generating real estate funds. These developments promise to enrich the investment landscape and provide property owners and developers with novel avenues for funding and growth.
The listing of LSRWA Tokens on the DS Swap Security Token DEX represents a pivotal moment for Landshare, a huge change in on-chain real estate trading. Enabling instant settlements, zero transaction fees, and versatile trading against LAND or stablecoin pairs, this step will bring unprecedented liquidity in the space. It amplifies trading dynamics with zero-fee liquidity pools, arbitrage opportunities, and higher trading limits, marking a significant step towards solving liquidity issues and enhancing the accessibility of real estate tokenization.
RWA tokens' on-chain secondary market trading sets the stage for a more liquid, inclusive, and dynamic real estate market. By leveraging the power of blockchain technology, the real estate sector is poised for a transformation that promises to redefine the essence of property investment, making it more accessible, efficient, and attractive to a global audience of investors.
The future of real estate investment is not just about owning property; it's about being part of a revolutionary movement toward a more democratized financial ecosystem.
Landshare Team
Tokenization has brought unprecedented changes across industries but it is more effective within the real estate sector. Although there is widespread discussion about how it opened varied opportunities for investors, the offerings and benefits extend further. The discussion is largely focused on how tokenized real estate helps investors but it is equally, or perhaps more important for property owners.
As a property owner, you must be looking for ways to maximize the profitability of your real estate assets. With the real estate tokenization, which is possible due to blockchain technology, the goal is certainly achievable. Converting your property into digital tokens to make them easily tradable and manageable on the blockchain opens up new avenues for you to increase profits.
Let’s take a look at the strategies how you can apply and effectively boost your profits.
Real estate tokenization involves creating digital tokens that represent ownership stakes in your property. These tokens are created and stored on blockchains that make their transactions easier, secure and transparent. Tokenization allows fractional ownership of property that further makes the property investment and trade more accessible.
There are multiple benefits of real estate tokenization including enhanced liquidity, increased transparency, access to a broader investor base, and international access among others. In addition, property management and raising capital against real estate property becomes hassle-free.
All these benefits make it easier for investors to enter the real estate market who found it difficult earlier. Where investors take advantage of benefits, property owners can also utilize these features and capitalize on them.
One of the most talked about features of real estate tokenization is fractional ownership. You can sell smaller shares of your property to a larger number of investors. It attracts investors with a small budget to take part in real estate investment.
Tokenization started the retailing of real estate properties making it in reach of low-income group investors. It significantly increases the pool of potential buyers, making your property more attractive.
Since buying and selling of real estate assets becomes easy and frequent, the liquidity goes up. The property owners can focus on selling the shares of a property at the best possible price to maintain the cash flow. It requires less hassle since you can find a large pool of investors interested in investing in real estate properties.
With tokenization of assets comes globalization of assets. Bringing your assets on chain means bringing it within reach of capital markets worldwide. Pool of investors from all over the world can invest in your property and it can increase the odds of raising capital by a huge margin.
Blockchain technology is synonymous with transparency and trust. It is immutable and secure that keeps all the transactions safe. These cutting-edge features better attract investors and keep them for long.
Real estate tokenization offers you numerous opportunities to boost your profits as a property owner. You can maximize the value and profitability and value of your assets by attracting more investors through fractional ownership, enhancing liquidity and cash flow, accessing global capital markets, improving transparency and trust.
The global real estate market is about to hit $700 Trillion in the coming years and tokenization of real estate has potential to share a significant share from this enormous valuation. As the sector continues to evolve by embracing emerging technologies such as tokenization, real estate property owners could see exciting transformations and extensive growth opportunities in the long run.
Landshare Team
What comes to your mind when considering whether there will be an increasingly high demand for real estate properties with time? The answer should be affirmative since we know that land is a finite resource, and so are properties. This more was needed to drive the demand for real estate properties, at least not for another century. However, property owners do not need to worry since real estate tokenization solves this issue.
One of the most effective use cases of blockchain technology—tokenization—has shown impressive results and assured a bright future. Real estate tokenization was among the first implementations of the technology, and it was indeed successful. McKinsey, a global management consulting firm, estimates that the volume of tokenized digital securities will hit $5 trillion by 2030, while other reports suggest that real estate tokenization will have a significant share in it.
A Boston Consulting Group (BCG) report showed that the market size of the tokenized real estate sector in 2022 was $2.7 Billion. However, it is expected to reach $16 trillion by 2030. Such huge numbers are only possible with supply meeting demand. Tokenization brings enormous possibilities, and property owners can now be assured of potential increased demand for tokenized real estate properties.
We must investigate the reasons that are expected to increase the demand for tokenized real estate. Let’s do this by first understanding what tokenization means.
Tokenization is the digital representation of assets on blockchain networks. Real estate tokenization does the same by representing property value through blockchain-based tokens. After tokenization, the real estate sector experienced remarkable changes, as it eliminated inherent flaws and brought some unique features.
The benefits, including rational ownership, increased liquidity, transparency, and security, place tokenized real estate ahead of the traditional market. Investors and property buyers are drawn towards tokenized real estate due to these offerings and likely to increase the demand in the contingency.
The demand for real estate investment has continued to grow. According to KPMG, the global commercial real estate investment hit $830 billion in 2019, demonstrating growing interest. On the other hand, average investors have been massively included in the real estate market because of some practical ways to invest, such as Real Estate Investment Trusts (REITs). The S&P Global REIT Index has seen notable growth in the past few years, indicating the rising demand for real estate investment.
Tokenization offers a more democratized way of investing in real estate, ensuring a huge future demand. Let’s delve into the offerings of tokenized real estate to understand why it could drive more demand:
Fragmentation or fractional ownership of real estate properties through tokenization not only makes it possible for small investors to participate but also empowers them. By making tokenization accessible to small investors, tokenization opens up a vast pool of untapped interested buyers. Once this crowd enters the space, the real estate market could see unprecedented demand, giving small investors a significant role to play.
Tokenization is often hailed as the 'democratization of the real estate sector '. This term refers to the idea that tokenization can make real estate investments more accessible to a wider range of investors, not just the ultra-wealthy. Many reports show that ultra-high-net-worth individuals (UHNWI), a term used to describe individuals with a net worth of over $ 30 million, prefer real estate investments for stability, cash flow, appreciation, and diversification. According to Tiger 21, a network of UHNWI entrepreneurs and investors, about 27% of these HNIs' investment portfolios consist of real estate investments.
If given opportunities, small investors are likely to follow the HNI investment strategy to benefit from the stability, cash flow, and appreciation of the real estate sector. Tokenized real estate provides many investors with an opportunity to enter the market.
Traditional real estate markets have always had a barrier to entry, given the requirement of high capital to invest. This has restricted small investors from entering the market, but tokenization solves this. Tokenized real estate properties are divided into small units and become affordable even for retail investors.
The low threshold for entering the real estate investment market has allowed many investors to enter, which was never possible earlier. There are numerous active projects in the tokenized real estate market that facilitate real estate investment with as low as $50. In comparison to traditional real estate, which might require from $100K to $1 Million, depending on the property, there are enormous possibilities in the tokenized real estate market.
Tokenization doesn't just allow investors to invest in real estate in any corner of the world, it opens up a world of possibilities. This global reach liberates investors from the limitation of investing in regional properties, offering them the excitement of exploring international properties with the possibility of a better return on investment and rental income yield.
Several studies show that nearly 90% of all US-registered real estate properties are accessible only to accredited investors. This shows that many investment options are only available to a small number of investors.
For instance, if you are an aspiring real estate investor from Indonesia, you can invest in tokenized real estate based in the United States. This access to international real estate properties was unimaginable until tokenization.
In tokenization, real estate properties are turned into tokens that investors or property buyers can hold. These tokens can then be easily traded to other investors. This easy and quick selling and buying of tokens not only makes the tokenized real estate sector highly liquid but also provides property owners with a sense of security, knowing that they can receive cash in exchange for their property or part of it quicker than they could traditionally.
Property owners can receive cash in exchange for their property or part of it quicker than they could traditionally. Investors or buyers are also not burdened with carrying the investment for long periods.
Blockchain technology plays a significant role in the easy management of real estate properties with the help of smart contracts. Tokenized real estate properties do not need intermediaries to carry out the transactions. Self-executable smart contracts take care of the property transactions once the conditions are met.
With blockchain technology comes the assurance of security and transparency. As smart contracts take care of the process, participants can see the whole transaction by themselves and see if everything is going according to plan. Due to the immutable nature of blockchain networks, it becomes nearly impossible to alter the transactions.
Since buying and selling tokenized real estate property is digital, it does not require paperwork, bureaucracy, or other requirements that increase transaction costs. The automated process keeps the cost minimal, making the transaction affordable.
KPMG study finds that a significant amount of time and money goes into a real estate transaction. Such transactions could sometimes take six months to 2 years and 1% to 3% of the assets’ value in fees, depending on the property. Tokenized asset transfers get done quickly and at a much cheaper rate.
Traditionally, real estate markets are illiquid, and it might take months to sell or resell your property. In tokenized real estate, however, since investors purchase the tokens, they can easily sell these tokens further to other investors or in the secondary market.
The real estate market has this limitation, but asset-backed tokens are easily tradable, further enhancing liquidity.
Landshare offers the ultimate real estate tokenization services that ensures investors as well as property owners get most benefits. We ensure all the features and offerings mentioned above available on the platform. Providing access to retail investors, accessibility to international real estate, high liquidity, transparent process, low transaction cost and secondary market trading, Landshare is committed to cater both ends in the real estate market: investors and property owners.
We have explored that tokenization of real estate is more than just a fleeting trend; it is a transformative innovation reshaping the market. With enhanced accessibility for retail investors to global reach and high liquidity, tokenization is smashing long-standing barriers.
The integration of blockchain technology makes the process transparent, secure, and efficient by reducing transaction costs and simplifying property management using smart contracts. Indeed, the future is digital, and the real estate sector is still catching up with the trend. Property owners can leverage tokenization and look forward to an emerging market that is more inclusive, efficient, and dynamic.
Landshare is a U.S.-based platform dedicated to the tokenization of real estate properties. It enables investors to acquire fractional shares in residential properties using blockchain technology, streamlining the investment process and broadening the scope of who can invest in real estate. By integrating blockchain technology into the real estate market, Landshare offers tokenized property assets on its platform, making it possible for investments to start at just $50, thus democratizing the entry into property investment.
The platform employs Real World Asset (LSRWA) tokens, granting investors partial ownership in tangible property assets and marking a notable innovation in real estate investment. Landshare's utility token, LAND, has demonstrated its transactional effectiveness by successfully selling four tokenized properties on the Binance Smart Chain (BSC), affirming its readiness for the market. Addressing the traditional inefficiencies and liquidity issues in real estate, Landshare positions itself as a critical player, offering promising prospects for growth and passive income generation.
Landshare Team
The real estate market is witnessing a transformative shift with the introduction of blockchain technology, particularly through the concept of tokenization. This innovative approach is redefining property ownership, offering new opportunities for investment and liquidity.
If you are an investor in real estate, you might have reaped the benefits of tokenized real estate investments. However, real estate tokenization not only opens a new avenue for real estate investors but also brings forth advantages to property owners.
Tokenization allows property owners to convert real estate assets into digital tokens, thereby simplifying transactions and broadening investor access. Liquidity and fractionalization are key benefits in tokenized real estate but for property owners within the ecosystem could see more than this.
In the following blog, let's explore more compelling use cases of tokenization for property owners including house flipping, partial sales, and tokenizing cash flows, backed by real statistics and figures to illustrate its growing impact.
Tokenization is a process of creating a digital identity of a tangible financial asset on blockchain which is unique and anonymous. This method takes the value of an asset on a chain. It brings benefits such as fractional ownership, liquidity, enhanced security and transparency. Currencies, commodities, real estate properties and art pieces are the common tokenized assets.
As an investor, you can enjoy investing in multiple assets through fractional ownership reaping the benefits of varied returns on respective assets. Real estate sector is traditionally one of the most illiquid ones since it takes time to sell off a property which requires time and effort but tokenization solves such pain points.
We have already discussed the pros and cons of tokenized real estate investments in earlier pieces. Along with the investors, tokenization resolves issues for property owners. The tokenized real estate properties can be sold off in units that increase higher chances of sale. Following are more crucial advantages of tokenized real estate for property owners.
Traditionally the practice of purchasing properties, renovating them and then selling them in profit is house flipping. It needs a hefty amount upfront and since the market turns or unexpected costs are also crucial factors, there are risks included in the process. But inclusion of tokenization could mitigate these risks to some extent also resolving issues related to liquidity.
The house flippers could sell fractional shares of the property as tokens in exchange for the required amount. Let’s say a flipper buys a property for $300,000 and needs $50,000 for renovations. Now they could issue 350,000 tokens valued at $1 each to raise the renovation funds. This way they can not only speed up the process but also manage to diversify the risk.
Tokenization also allows partial sales that enable property owners selling a fraction of their property to different investors. Though the method could be useful for any real estate property, the markets with high-value properties such as the United States can benefit the most. This way the property owners bear no debt and it becomes a great alternative to home equity line of credit (HELOC).
Property owners can sell out their shares of property to a pool of investors after tokenizing it. For instance, a property owner takes 60% ownership and sells the rest 40% of the property. Along with the democratization of real estate investment, this approach also provides liquidity to owners to invest in more ventures or even make improvements in the real estate property.
One of the innovative ways to secure the funding along with providing regular income to investors is through tokenization of rental properties’ cash flows. You as an owner of a real estate property that generates $10,000 per month through rent could use the method and tokenize this case flow while offering tokens that represent a share in the rental income. This method attracts investors seeking stable returns without the need for large capital investments.
A Deloitte report states that by offering such fractional ownership and investment opportunities, tokenization could grow the liquidity of global real estate assets by over $1.4 trillion.
At Landshare, we've dedicated ourselves to democratizing real estate investment, and our efforts have culminated in the Landshare RWA Token. This innovative product empowers anyone to generate passive income from real-world assets with an investment as low as $1.
The benefits of our tokenization process extend beyond just investors. Property owners—whether individuals, corporate entities, investment clubs, or funds—now have a powerful tool at their disposal. Through tokenization, both investors and property owners can cultivate a relationship that is mutually advantageous.
As we build on our strong base of RWA investors, our next objective is to enable property owners to tokenize their assets through the Landshare platform. This capability will allow them to raise funds and secure loans against their properties, enhancing the value provided to our existing LSRWA investors.
Tokenization offers property owners a range of strategic advantages. It isn't merely about listing properties for sale. Its true value lies in its ability to provide liquidity and allow for the fractional ownership of properties. Alternatively, they can borrow against the future cash flow from their properties, maintaining their stake while obtaining upfront cash.
Landshare has always been taking bold and unique steps for the sake of community and is now looking to include property owners, who remain at the other end of spectrum, along with the investors.
This initiative is set to broaden the array of properties available on our platform, diversify our offerings with new property types including vacation homes and commercial spaces, and expand our reach beyond the U.S. It also introduces new mintable NFTs, enriching our investors' options.
The broader impact of real estate tokenization is significant, offering increased liquidity, reduced transaction costs, and enhanced market efficiency. A study by the World Economic Forum predicts that by 2027, 10% of the global GDP will be stored on blockchain technology, with real estate being a major component of this shift.
This adoption indicates a robust future where tokenization not only makes real estate investment more accessible but also more integrated with global financial markets, allowing for seamless international transactions and diversified portfolios.
Tokenization stands out as a revolutionary tool in real estate, providing property owners and investors with novel ways to manage and profit from their assets. As the technology matures and regulatory frameworks develop, the possibilities for tokenization in real estate will likely expand, further unlocking the potential of properties as both investment vehicles and sources of revenue.
Landshare is a platform for tokenizing property in the United States. It allows investors to buy shares in residential properties through blockchain tokens. This method has simplified the investment process and made real estate investment accessible to a broader audience. Landshare merges blockchain technology with the real estate sector by offering tokenized real estate assets on its platform, enabling investments as low as $1 and democratizing access to property investment.
The platform utilizes Real World Asset (LSRWA) tokens to offer investors shared ownership in actual property assets, which is a significant innovation in real estate investment. Landshare's utility token, LAND, has proven its transactional efficiency with the successful sale of four tokenized properties on the Binance Smart Chain (BSC), showcasing its market readiness. By addressing inefficiencies and liquidity challenges in traditional real estate, Landshare is emerging as a pivotal player, providing attractive opportunities for growth and passive income.