Real estate is the biggest asset class in the world. Besides being capital intensive, it’s also one of the most illiquid investments you can make. Tokenization is here to change this, taking us from a world where a property is transected once a decade, to a new reality where hundreds of transactions of that same asset are executed within the minute.
Blocksquare enables companies world-wide to convert any real estate property into a 100,000 digital shares by leveraging a compliant turn-key solution that makes use of blockchain and smart contract technology and combines them with available legal frameworks.
But, where does tokenization make sense today? Prime real estate markets (e.g. San Francisco, New York, Berlin, London, Amsterdam, Paris, Sydney, Tokyo, Hong Kong, Shanghai) have no liquidity problems; these markets have enough buyers locally and internationally to provide liquidity for properties of any size. But hundreds of smaller markets all around the world where capital is limited and concentrated within only a few investors, properties of bigger size have only few potential buyers.
What’s more, established solutions which already address these markets — like REITs, crowdfunding or syndication — won’t be able to technically match the ever increasing requirements of their investor networks.
So we used blockchain to create a solution where (1) investors can customize their diversification, (2) investments are not locked up for 7-10 years, (3) investors have more liquidity due to the fact that their investments are exposed to a global digital economy.
Interested in learning how we add value and liquidity to real estate properties? Meet us at the Tech Alley!