Real-world asset (RWA) tokenization can fully overhaul the real estate funding sector, which is very illiquid, full of intermediaries, and excessive transaction prices, in response to Polygon CEO Mark Boiron.
In an interview with Cointelegraph, the CEO stated that tokenization of properties may take away pointless intermediaries, thereby reducing transaction prices.
The CEO added that fractional possession and buying and selling tokenized real estate on the secondary markets would open up liquidity and improve the rate of cash. Boiron advised Cointelegraph:
“The factor you really need is the power to remove the illiquidity low cost on real estate. All real estate is illiquid and due to this fact it is discounted to some extent. It can be extra invaluable if it is liquid.”
Lumia Towers, an ongoing $220 million industrial real estate improvement in Istanbul, Turkey, that includes two skyscrapers with 300 mixed-use industrial and residential items, used Polygon’s expertise to tokenize the challenge.
Boiron stated that the way forward for real estate is onchain. Nevertheless, regulators should be snug with blockchain expertise and public permissionless programs earlier than tokenized real estate turns into the de facto commonplace.
Real estate coming onchain globally
In america, Quarter affords 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 can be bought — deviating from the normal debt-based mortgage financing that’s the present commonplace in lots of jurisdictions.
In February 2025, real estate platform Blocksquare launched a real estate tokenization framework for the European Union that enables fairness rights to be assigned and transferred onchain.
Real estate asset tokenization is gaining recognition within the United Arab Emirates (UAE) in what has turn into one of many hottest real estate markets on this planet.
Based on Tokinvest founder and CEO Scott Thiel, property builders within the UAE are scrambling to tokenize their tasks as a substitute means to conventional financing constructions.
Stablecoin issuer Tether additionally partnered with real estate platform Reelly Tech in February 2025 to broaden the usage of USDt (USDT) in real estate transactions within the UAE.
