Real estate investment traditionally requires significant capital investment. The industry faces liquidity issues, and geographical diversification of portfolios can be impossible. Yet… Real Estate investment is consistently considered as one of the best investments.
Imagine if these problems could be eliminated!
In the world of blockchain and cryptocurrencies, the idea of tokenization has proven to be revolutionary. Tokenization involves transforming tangible assets into digital tokens on a blockchain, signifying ownership or entitlements. This ground breaking technology is capable of representing a diverse range of assets, from entire properties to the right to the rental income they generate… enter Libertum!
The Libertum solution converts a property into tokens or divisible digital shares. These are directly linked to an agreed and guaranteed rental yield for investors. These tokens can be traded on a Peer2Peer marketplace transforming an illiquid market into one where hundreds of property transactions can happen every minute, transforming the traditional Real estate market.
These are tangible or intangible assets like real estate, art, stocks, bonds, and even commodities. Tokenization enables these assets to become more divisible, tradable, and accessible to a broader range of investors.
One of the most prominent use cases for tokenization. It allows real estate assets or the right to the rental income they generate to be divided into tokens, making it easier for people to invest in properties without buying the entire asset. This enables fractional ownership and access to lucrative investment opportunities that are more typically restricted. Tokenization is great for real estate owners as their properties can access more liquidity.
These are a type of digital asset token and are being deemed by many as a coupon or a pre-paid gift card. This kind of token is basically a contract for the provision of goods or services, to be redeemed by the token holder, once or continuously.
Liquidity refers to how “liquid” an asset is which simply means how easy it is to buy or sell at any given time because you always require someone on the other side willing to trade with you. Tokenized assets can be traded 24/7 on the Libertum marketplaces, improving liquidity compared to traditional illiquid assets like real estate. Increasing liquidity is positive because it increases the financial flexibility of an asset, allowing individuals and companies to respond quickly to any price changes.
Tokenization is the core concept of RWAs. It’s the process of creating digital tokens that represent ownership, value, or rights for any asset that exists in the physical world. The Libertum Tokenization Platform enables the trading and investment of real estate assets not typically accessible in certain markets, geographic or demographic regions and increases liquidity and accessibility for them.
The underlying technology behind tokenization. Blockchain provides the security, transparency, and immutability required to ensure the integrity of tokenized assets.
Tokenization allows assets to be divided into smaller units, enabling fractional ownership. Just like how cryptocurrencies can be purchased in small increments as a whole, investors can purchase tokens representing a fraction of an expensive asset, making the experience overall more accessible.
These self-executing contracts with the terms of the agreement directly written into code automate processes like dividend distribution, making ownership of tokenized assets efficient as many operational burdens typically relying on real-world middlemen can be automated in a transparent and fair way.
