Multifamily and hotel properties are included.
Thus “access to high-value assets is democratized,” say those involved.
Real estate company RedSwan Digital Real Estate reports that it has tokenized $100 million in commercial real estate assets on the cryptocurrency network, Stellar.
RedSwan, which is under the supervision of the Financial Industry Regulatory Authority (FINRA) in the United States, integrated institutional-grade multifamily and hotel properties into its platform. This, with the objective of “democratize” access to real estate investments through decentralized technology.
RedSwan uses Stellar’s infrastructure, renowned for its fast and low-cost transactions, to issue tokens through its regulated Token Studio system. These represent fractions of real estate values that can be distributed globally. The above allows investors to access smaller amounts, greater transparency and constant liquidity in the secondary market.
As defined by the CriptoNoticias Cryptopedia, tokenized assets (RWA) are cryptographic tokens that represent tangible assets that exist outside of the digital realm. Among them, works of art, real estate, raw materials and merchandise.
These assets have a total value of USD 18 billion, to date. This figure has increased 720% since July 2023, when it reached USD 2.2 billion. This is seen in the following DeFiLlama graph:
Edward Nwokedi, founder and CEO of RedSwan, said that Stellar’s architecture “aligns with the mission of opening access to real estate investment through blockchains.”
According to North American market estimates, around USD 75 trillion in real estate could be unlocked through tokenization. Denelle Dixon, executive director of the Stellar Development Foundation, highlighted that the network was designed to move value safely and quickly. In his opinion, this makes it on an ideal platform for tokenized real assets like those of RedSwan.