Tokenization can transform real estate investing — Polygon CEO

Actual-world asset (RWA) tokenization can utterly overhaul the true property funding sector, which is very illiquid, stuffed with intermediaries, and excessive transaction prices, in accordance with Polygon CEO Mark Boiron.

In an interview with Cointelegraph, the CEO stated that tokenization of properties might take away pointless intermediaries, thereby decreasing transaction prices.

The CEO added that fractional possession and buying and selling tokenized actual property on the secondary markets would open up liquidity and improve the rate of cash. Boiron informed Cointelegraph:

“The factor you really need is the flexibility to eradicate the illiquidity low cost on actual property. All actual property is illiquid and due to this fact it is discounted to some extent. It may be extra useful if it is liquid.”

Lumia Towers, an ongoing $220 million industrial actual property improvement in Istanbul, Turkey, that includes two skyscrapers with 300 mixed-use industrial and residential models, used Polygon’s know-how to tokenize the venture.

Boiron stated that the way forward for actual property is onchain. Nevertheless, regulators have to be comfy with blockchain know-how and public permissionless programs earlier than tokenized actual property turns into the de facto customary.

Associated: The $1 billion blueprint for tokenized actual property: RWAs shaping Dubai

Actual property coming onchain globally

In the USA, Quarter provides tokenized alternate options to debt-based dwelling mortgages to extend ranges of dwelling possession and make it extra inexpensive to aspiring dwelling patrons.

The corporate achieves this by assigning fractionalized fairness rights to each the property investor and the possible dwelling purchaser, which might be bought — deviating from the normal debt-based mortgage financing that’s the present customary in lots of jurisdictions.

In February 2025, actual property platform Blocksquare launched an actual property tokenization framework for the European Union that enables fairness rights to be assigned and transferred onchain.