This week in EG magazine, and on EGi, the second in a series of three articles by Osborne Clarke has been published looking at the tokenisation of real estate.
Tokenisation, in this context, involves representing ownership or investment in a real estate asset in the form of a blockchain-based "token". The token is issued by a blockchain system, and every action taken in relation to that token, including transfers, is recorded on the same system.
Tokenisation offers a way to fractionalise ownership of typically large, high value assets, and to introduce efficiency and automation into aspects of transfer and sale. The democratisation of real estate and the creation of more accessible investment opportunities for individuals are also often touted as potential benefits of tokenisation.
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Second article: Tokenisation of real estate: what are the barriers?
In this second article, Osborne Clarke explores the perceived commercial and regulatory challenges that may be getting in the way of tokenisation.
First article: Tokenisation of real estate: an untapped opportunity?
The first article explored the significant potential benefits offered by tokenisation through the use of blockchain technology and automation including the provision of investment opportunities in large assets for small investors.
The third article in this series will be published next week.
For more information on tokenisation in real estate please contact one of the authors of the article.