The traditional world of real estate is a thing of the past. Thanks to tokenization, more people worldwide can now access what was once off-limits to all but the wealthiest and most experienced investors. Properties can be “tokenized” on the blockchain and then put up for sale—each token represents a fractional interest in the asset. Not only does this process help businesses raise needed capital for ongoing projects, but it also provides a wealth of benefits for individual investors.
Typically, investors are compelled to maintain an investment in commercial real estate until the project is completed; however, with tokenization, assets are liquid, so investors can sell at any time and maintain control of their funds. Among the other extensive benefits of real estate tokenization are:
- Reduced barriers to entry. Tokenization democratizes what was once a difficult market to break into—anyone interested in becoming a partial property owner can invest in a fractional portion of a commercial real estate asset, and organizations also benefit by raising capital faster. This industry has been overdue for a change, and we are proud to be on the leading edge of it.
- Ease of investment. Tokenization streamlines the entire process by removing bank fees associated with traditional commercial real estate investments and automating many procedures to enhance efficiencies. Likewise, bank and real estate records aren’t required for investment. All in all, blockchain technology and tokenization can reduce real estate-related transaction costs significantly.
- Security. The tokenization uses blockchain technology, which is known for its superior security standards and bolsters security and transparency, both massive benefits for investors. Likewise, commercial real estate investments are backed by real assets, which also helps to reduce investment risk.
- Global reach. With tokenization, investors don’t need to live or work in the same market as their real estate investment—they can buy a portion of a property on another continent, in another time zone, in another hemisphere.
- Diversification. Everyone benefits from diversification: The industry finds more fractional investors. In contrast, investors can purchase as little as one token to dip a toe into the commercial real estate waters and diversify their portfolios. Everyone benefits from the diversity of investors and diversification of portfolios.
ABC Tokens offers tokens to encourage more investors to enter the commercial real estate market, lowering the capital required to invest while increasing transparency, liquidity, and access. The company aims to have more than 5 million ABC Tokens in circulation in 2022, with $150 million deployed into U.S. commercial real estate investments.