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How does real estate tokenization work?

How does real estate tokenization work?

Real estate tokenization starts with the most basic step, which is verifying the real estate using various data sources about the assets. It can range from acquiring ownership documents, utility bills, tax bills, title deed insurance, neighborhood checks, and so on. This is how we create a digital twin of a real-world asset. Reitcircles is now creating a global platform to enable this as this will lay the foundation of the rest of the tokenization process. The focus is on decentralization of the this verification process and enabling a fair and transparent process per country, where individuals / corporation owning the assets are in charge of managing this verification with the help of a decentralized verification marketplace.

Once an asset NFT has been issued, various financial instruments can be created based on this making liquidity availability more decentralized using DeFi instruments.

Mostly a single Asset NFT can in principle be now locked into smart contracts and then a borrowing made against it. In this case, the entire lending process is much easier as the process can be entirely digitized.

The issuance of a bag of FT (Fungible tokens) in exchange for a locked NFT is referred to as fictionalization. This enables creating a more level playing field where we can now trade assets on the same level as equity. There are many financial instruments that allow such tokens to be issued that represent the real world of verified assets.

A real estate token can represent, among other things:

  • Ownership of part of a real property
  • Ownership of the entire real property
  • An equity interest in an entity that controls real property
  • An interest in a debt secured by real property, or
  • A right to share in the profits generated by real property

Real estate tokens can also be differentiated from real estate investment trusts (REITs) since they allow for a specific investment linked to a particular real property, whereas REITs typically facilitate investment into pools of various real estate assets.

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A seasoned entrepreneur, having experience in bootstrapping startups and software engineers in building and supporting applications end to end. Held technical leadership positions in mid to large companies.Graduate from IIT Kharagpur and MBA Kellogg School of Management, USA.
A seasoned entrepreneur, having experience in bootstrapping startups and software engineers in building and supporting applications end to end. Held technical leadership positions in mid to large companies.Graduate from IIT Kharagpur and MBA Kellogg School of Management, USA.
Ex Telco executive for a Decade, Ex MAHINDRA & MAHINDRA General Manager. More than 3 decades of Marketing experience, Expert in creating auto brands, Single handedly created Isuzu in Oman for 2 decades, Bachelor of Engineering from NIT (India), more than 35 international awards. MBA from the TRIUM program (LSE,HSE Paris and Stern School of Management USA).
Ex Telco executive for a Decade, Ex MAHINDRA & MAHINDRA General Manager. More than 3 decades of Marketing experience, Expert in creating auto brands, Single handedly created Isuzu in Oman for 2 decades, Bachelor of Engineering from NIT (India), more than 35 international awards. MBA from the TRIUM program (LSE,HSE Paris and Stern School of Management USA).
A veteran leader with 38 years at Tata Group’s Construction Equipment Division, Mr. Nair has expertise in Sales, Marketing, Business Development, and Key Account Management. A former ICEMA council member and CII Karnataka taskforce participant, he is an IIT-ISM Dhanbad graduate.
A veteran leader with 38 years at Tata Group’s Construction Equipment Division, Mr. Nair has expertise in Sales, Marketing, Business Development, and Key Account Management. A former ICEMA council member and CII Karnataka taskforce participant, he is an IIT-ISM Dhanbad graduate.
Ex-Google, HP, Synopsys. Executive with graduate degrees from IIT, Kanpur (MS Physics, India), and the University of Arizona (PhD Optics). He has more than 85 granted patents and 20 publications, based in San Jose, California, and working as SVP of Engineering in a startup.
Ex-Google, HP, Synopsys. Executive with graduate degrees from IIT, Kanpur (MS Physics, India), and the University of Arizona (PhD Optics). He has more than 85 granted patents and 20 publications, based in San Jose, California, and working as SVP of Engineering in a startup.
Andrew is a software developer and frequent contributor to Cardano community projects. In the past, he has worked for large companies like Walmart and Nike. He currently serves as the CTO of projectNEWM.io
Andrew is a software developer and frequent contributor to Cardano community projects. In the past, he has worked for large companies like Walmart and Nike. He currently serves as the CTO of projectNEWM.io
Awais Khan, a Venture Partner, contributed to a $300M exit at Proxicom Inc., co-founded KPMG’s venture capital group, and advised global funds and organizations. He holds a BS in Computer Engineering and an MBA from LSE, HEC Paris, and NYU Stern.
Awais Khan, a Venture Partner, contributed to a $300M exit at Proxicom Inc., co-founded KPMG’s venture capital group, and advised global funds and organizations. He holds a BS in Computer Engineering and an MBA from LSE, HEC Paris, and NYU Stern.
Chinmoy Banerjee, with over 20 years of experience in business process management, has led roles at Infosys BPO, TCS, and IBM across multiple countries. He holds a Trium Global MBA and a Master's in Financial Management and is based in New Jersey, USA.
Chinmoy Banerjee, with over 20 years of experience in business process management, has led roles at Infosys BPO, TCS, and IBM across multiple countries. He holds a Trium Global MBA and a Master's in Financial Management and is based in New Jersey, USA.
Co-founder of Nahwa Sharq Co. Ltd. and board member at Aljazirah Vehicles Agencies, Saudi Arabia. Over a decade of experience in equity management across US, Japanese, and Saudi markets. Holds a Bachelor’s in International Business from LAU and diplomas in leadership, negotiation, and finance from LBS.
Co-founder of Nahwa Sharq Co. Ltd. and board member at Aljazirah Vehicles Agencies, Saudi Arabia. Over a decade of experience in equity management across US, Japanese, and Saudi markets. Holds a Bachelor’s in International Business from LAU and diplomas in leadership, negotiation, and finance from LBS.
Navin Atolia has over two decades of experience as a free lancer real estate Consultant in Jaipur, India. Presently handling independently sales of apartment project in Jaipur.
Navin Atolia has over two decades of experience as a free lancer real estate Consultant in Jaipur, India. Presently handling independently sales of apartment project in Jaipur.
Accomplished Business Development Manager with 25 years of expertise and a postgraduate degree from Delhi University. Proficient in administration, HR, and strategic growth across global markets. Proven track record in driving revenue, optimizing operations, and building lasting client relationships. Skilled in market analysis, talent acquisition, and cross-functional leadership, fostering sustainable partnerships and business excellence.
Accomplished Business Development Manager with 25 years of expertise and a postgraduate degree from Delhi University. Proficient in administration, HR, and strategic growth across global markets. Proven track record in driving revenue, optimizing operations, and building lasting client relationships. Skilled in market analysis, talent acquisition, and cross-functional leadership, fostering sustainable partnerships and business excellence.

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