Real Estate Tokenization

A case study for real estate
developers, asset owners and
distributors.

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GLOBAL ASSET TOKENIZATION

Tokenization of Real Estate is going mainstream: the global tokenized real estate market estimated to be USD 3.2 trillion by 2030

Tokenization of global illiquid assets
(in trillion Dollar)

New regulations build the foundation for a secure environment and accelerate the tokenization of global assets

European Union

Markets in Crypto-Assets (MiCA)
DLT Pilot Regime (Regulation of the European Parliament and the Council)

Germany

Electronic Securities Act (eWpG)
Crypto fund regulation (KryptoFAV)
Regulated crypto custodians (after KWG)
Regulated crypto registrar (after eWpG)
Crypto transfer regulation (KryptoWTransferV)

Switzerland

Federal DLT Act (Adaptation of federal legislation to the technology of distributed electronic registers)

Liechtenstein

Blockchain Act (TVTG)

CONTACT US

The future of real estate is tokenized. Benefit from innovative solutions that decrease costs and bring liquidity to the real estate market.

Max J. Heinzle

Founder & CEO

YOUR BENEFITS

Tokenized Real Estate can take any form and legal structure.

Tokenization refers to the process of converting an asset into a digital token on a blockchain. This allows for the ownership and transfer of the asset to be managed and tracked using blockchain technology. In principle, almost any asset can be tokenized. The decisive factor in the feasibility of tokenizing an asset is usually the legal situation in the jurisdiction of the issuing party. Additionally, the structure of the security itself, such as whether it is a debt or equity instrument, can impact the process and outcome of tokenization.

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Legal Structure

Security Tokens (sui generis)
Electronic Security (eWPG)
Crypto Funds (KryptoFaV)
DLT Financial Instruments (DLTR)

Asset Structure

Tokenized Equity
Tokenized Debt
Tokenized Funds
Utility Tokens
Non-fungible Tokens

FOR ISSUERS

Distribute Security Tokens across multiple marketplaces

Tokenized Ownership

Tokenization allows for fractionalized ownership. Investments in properties can be made available to anyone starting with minimum investments of 1 EUR. Compared to traditional securities, investors can trade tokenized real estate 24/7.

Tokenized Interest

Rental income can be automatized and distributed to each token holder. A real estate token can represent interest in a an entity that controls real property, interest in a debt secured by real property or a right to share profits generated by the property..

Tokenized Funds

Investments in private real estate funds are no longer bound to minimum investment sizes. Retail investors are now able to invest in portfolios of properties, delegating administrative work to the fund entity.

USE CASES

Real estate developers and asset owners can streamline funding, investment and distribution processes

Finance your real estate project

Issue and distribute fully regulated security tokens to professional and retail investors. Tokenized assets offer more than traditional assets. Tokenization adds value by increasing liquidity, making more investors accessible, reducing transaction and administrative costs.

Increase liquidity for your assets

Investors in traditional real estate funds face a costly process when approaching a secondary sale. Simply offer automated trading functionality to your investors. Beside funds, bonds, debt, equity or any other asset type can be tokenized to make illiquid assets tradeable.

Simplify investor management

Simple rulesets within Smart Contracts allow for streamlined business processes. Onboarding including KYC and AML procedures can be automized. Investor whitelisting, the configuration of lock-up periods and coroporate actions like dividend payments can be automatically enforced.

Setup a token marketplace

Launch your own platform that allows you to tokenize real estate assets and sell multiple properties, raise funds for various real estate development projects, and provide a large number of property owners with the opportunity to sell their properties.

ADVANTAGES OF TOKENIZATION

6 Advantages of distributing tokenized Real Estate on your own whitelabelled platform

Investor access

Tokens can represent fractions of real estate and don`t come with high upfront capital requirements. Thus, tokenized real estate enables accessible investment opportunities in this asset class for the first time.

Liquidity increase

Fractions of tokenized assets can be easily bought and sold. This enables a larger number of investors to invest. Thus, creating a secondary market with no administrative overhead.

Operational efficiency

Through blockchain-based rulesets (Smart contracts) numerous tasks can be carried out automatically. Whether it is document verification, compliance, trading, lock-up periods or dividend payments.

Cost reduction

Tokenization leads to lower costs up to 65% in comparison to traditional assets by reducing complexity. The process of matching buy and sell orders, clearing, settling trades, and recording ownership of assets can be automatized.

Diversification increase

For larger investors seeking portfolio diversification, tokenization facilitates customized portfolio rebalancing with near-instant settlement, so investors can sell or buy tokens to adjust their exposure to a particular asset.

Settlement Time reduction

Settlement facilitated by blockchain technology makes the transfers of ownership certificates faster and more secure, with an immutable record ow ownership always tracked on the blockchain.

TOKENIZATION OF REAL ESTATE

From first real estate token to liquid secondary markets

Roadmap

1. Tokenize a project with your own Issuance & Investment platform

2. Market multiple projects with your own whitelabelled marketplace

3. Distribute globally across multiple platforms

4. Enable secondary market trading for your securities

CASE STUDY

Easy access to real estate projects for everyone

The problem

Real Estate Developers face challenging market sentiment paired with regionally limited distribution efforts via agents and agent networks. Additionally the majority of the population is excluded from owning and investing in real estate due to the minimum investment sizes.

The solution

Real Estate Developers can directly market tokenized real estate projects to their clients, direct to consumer. Thus, existing distribution channels stay intact and a pool of untapped real estate investors can be accessed, due to smaller minimum investment sizes. Additionally, costs can be reduced for investors and real estate developers alike. With the software solution or 21.finance, real estate developers re-invent their distribution efforts and build for the future through a licenced and fully serviced white-label marketplace.

Our Approach

We provide a turnkey digital asset platform for real estate developers with all necessary partners fully integrated. Investors can directly open investment accounts with licenced banks, buy and sell security tokens via our integrated secondary market. All processes are designed end-to-end according to compliance requirements of your liability umbrella. In a few clicks users can act and invest in real estate projects for as little as 1 euro. You profit from the fees.

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Great expertise and service level.
We considered several software solutions to integrate into our ecosystem. But none seemed to meet our requirements. When we came across 21.finance we were really impressed by their expertise, service level and agile approach.