Tokenization of real estate with DigiShares
The Global Tokenization Market
World Economic Forum: 10% of global GDP on blockchain by 2027
Finyear: tokenization market CAGR at 59% from 2019-2030
Frankfurt School BC: Europe tokenization market $1.5 trillion in 2024
Finyear: tokenization market CAGR at 59% from 2019-2030
Frankfurt School BC: Europe tokenization market $1.5 trillion in 2024
JLL: 80% of all investments into real estate in just 60 cities around the globe, meaning that 1000s of areas are underserved.
MIT: 93% of real estate is beyond the reach of retail investors.
Better Homes and Gardens: 89% of US investors interested in real estate but only 3% has invested.
MIT: 93% of real estate is beyond the reach of retail investors.
Better Homes and Gardens: 89% of US investors interested in real estate but only 3% has invested.
What Tokenization Means
Efficiency – time & cost (x10 reduction):
- Digitization and automation of processes
- Automated compliance and governance
- Removal of human errors
New capabilities:
- Increased liquidity (from 0 to 1)
- Fractional ownership / democratization
Other values:
- Global standards and interoperability
- Logging of transactions
- Factor x10 increased design space
- Digitization and automation of processes
- Automated compliance and governance
- Removal of human errors
New capabilities:
- Increased liquidity (from 0 to 1)
- Fractional ownership / democratization
Other values:
- Global standards and interoperability
- Logging of transactions
- Factor x10 increased design space
Definition: Tokenization is the process of issuing a blockchain token (security token) that digitally and legally represents a real asset.
Just a Few Benefits of Tokenization
The Tokenization Process
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Step 1: The Deal
Determine the specific property or properties to tokenize and consider jurisdiction,
types of shareholders, and the relevant regulations.
types of shareholders, and the relevant regulations.
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Step 2: Legal Structure
Determine the legal structure. Various options are available and the owner can choose to tokenize the equity of a Special Purpose Vehicle (SPV), a debenture, or another form of participation right such as revenue or profit.
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Step 3: Appropriate Technology
Choosing Blockchain protocol, Token configuration, KYC/AML questionnaire. Setup
token custody solution with a custody provider and choose the right blockchain
network for token creation.
token custody solution with a custody provider and choose the right blockchain
network for token creation.
4
Step 4: Token Creation & Distribution
Creating a distribution plan and payment methods for potential investors to purchase the token. On your dashboard you can see the amount of funds that you have raised in real-time.
Benefits for All
Your own real estate crowdfunding platform
Digitizes and automates many processes related to financing and management of investors
Advanced share cap table module
Allows investing in most currencies (fiat & crypto)
Uses audited smart contracts for high safety and security
Offers instant liquidity through our OTC marketplace
Shareholder meetings, votes, etc.
Electronic signatures
Tokens are compatible with exchanges, custodians, etc.
Digitizes and automates many processes related to financing and management of investors
Advanced share cap table module
Allows investing in most currencies (fiat & crypto)
Uses audited smart contracts for high safety and security
Offers instant liquidity through our OTC marketplace
Shareholder meetings, votes, etc.
Electronic signatures
Tokens are compatible with exchanges, custodians, etc.
Fast and flexible customization of platform
Ability to serve many clients
Strong recurring revenue source from assets
Become a tokenization provider in your region
Ability to serve many clients
Strong recurring revenue source from assets
Become a tokenization provider in your region
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Asset Owner
Investors
Digital shares
Cost effective trading
Transferable shares
24/7 Markets
Rapid settlement
Cost effective trading
Transferable shares
24/7 Markets
Rapid settlement
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Value Proposition for Tokenizing Real Estate
Real estate tokenization is a process in which real estate shares are created as digital tokens on a blockchain. Tokenizing your real
estate project can help you raise capital more efficiently by giving investors unprecedented access to private real
estate investments, transparency, and liquidity.
Pains
Primary Gains
• Digitized and automated processes
• Immediate trading and liquidity (premium: 20-30%)
• Immediate trading and liquidity (premium: 20-30%)
Secondary Gains
• Ability to fractionalize/democratize
– reduced ticket size
– increased diversification
• Access to new types of investors
• Access to new global infrastructure of investors and secondary liquidity
• Programmable tokenized shares for automation of cross-border transfers,
lock-up periods, dividend payment, etc.
• Smart "functions": custody, DeFi lending, atomic transfer, etc.
• Increased security by removal of human errors
• Transparency and traceability
– reduced ticket size
– increased diversification
• Access to new types of investors
• Access to new global infrastructure of investors and secondary liquidity
• Programmable tokenized shares for automation of cross-border transfers,
lock-up periods, dividend payment, etc.
• Smart "functions": custody, DeFi lending, atomic transfer, etc.
• Increased security by removal of human errors
• Transparency and traceability
• Costly, paper-based, and time-consuming processes
• Almost zero liquidity
• Almost zero liquidity
Value Proposition for Tokenizing Real Estate
Advantages with DigiShares
Your own real estate crowdfunding platform
Digitizes and automates many processes related to financing and management of investors
Advanced share cap table module
Allows investing in most currencies (fiat & crypto)
Uses audited smart contracts for high safety and security
Offers instant liquidity through our OTC marketplace
Shareholder meetings, votes, etc.
Electronic signatures
Tokens are compatible with exchanges, custodians, etc.
Digitizes and automates many processes related to financing and management of investors
Advanced share cap table module
Allows investing in most currencies (fiat & crypto)
Uses audited smart contracts for high safety and security
Offers instant liquidity through our OTC marketplace
Shareholder meetings, votes, etc.
Electronic signatures
Tokens are compatible with exchanges, custodians, etc.
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"Our clients tokenize their real estate for three reasons: digitization and automation of processes, fractionalization to reach new types of investors, and the massively increased liquidity."
Investor registration and verification (KYC / AML)
Token purchase
Electronic document workflow and signatures
Tokenized shareholder register over multiple share classes
Investor communication & voting
Dividends
Freeze / renewal of tokens
Internal exchange
Integration to custodians, banks and payment platforms
DigiShares Platform
Issuance
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Corporate Management
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Examples of Tokenized Real Estate Projects
US real estate investment and trading platform. For listing of third party projects.
First projects go live in Dec.
Project size between $10-50m.
Legal units in Wyoming.
First projects go live in Dec.
Project size between $10-50m.
Legal units in Wyoming.
US commercial real estate
South African real estate
Real estate developer with own and third-party properties.
First 3 projects planned as a mix of finished and pre-construction projects, between $1-20m, and a mix of commercial and retail.
First 3 projects planned as a mix of finished and pre-construction projects, between $1-20m, and a mix of commercial and retail.
US container houses
Container-based houses in the US, many projects around $200k in size.
Legal units in Wyoming.
Legal units in Wyoming.
US hotel project
Financing of large hotel acquisition, $80-220m. Hotel is underperforming.
Consortium with project manager, lawyers and DigiShares for platform.
Many subsequent projects if first is successful.
Consortium with project manager, lawyers and DigiShares for platform.
Many subsequent projects if first is successful.
Contact us to learn more about real estate tokenization