Real Estate Revolution: Tokenization Unlocks Liquidity, Reduces Fees
1min read Real estate investment is poised for a significant transformation with the advent of tokenization, according to Polygon CEO Mark Boiron. In a recent conversation, Boiron highlighted the potential of tokenizing real-world assets (RWAs) to eliminate inefficiencies, reduce transaction fees, and unlock liquidity in the real estate market.
Boiron emphasized the importance of redeeming the illiquidity discount on real estate, as illiquid assets often face lower valuations. A notable example is Lumia Towers, a $220 million office building in Istanbul that leveraged Polygon's technology to tokenize its real estate project, demonstrating the practical application of tokenization in the real estate sector.
Several companies are already integrating blockchain into real estate deals. In the United States, Quarter has launched tokenized mortgage products to promote affordability and homeownership. In Europe, blocksquare has presented a property tokenization platform to facilitate equity transfer on-chain. Meanwhile, the United Arab Emirates (UAE) is rapidly adopting blockchain-based funding systems to enhance liquidity and accessibility in real estate investments. Tether's partnership with Reelly Tech in February 2025 further accelerated USDT-based real estate transactions in the UAE, fostering stablecoin adoption in real estate investments.
Despite its immense potential, tokenization faces regulatory challenges. Boiron stressed the need for governments to adapt to public, permissionless blockchain networks before tokenization can gain widespread acceptance in global real estate markets. As adoption increases, real estate may eventually become entirely on-chain, offering a more liquid, accessible, and cost-effective investment arena.
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