A new global market for tokenized real estate assets is taking shape, fueled by the growing adoption of cryptocurrencies and the emergence of digital asset trading platforms that are offering young investors micro-shares of properties that have been tokenized on blockchain.
While wary institutional investors await clarification of regulatory rules of the road for tokenized real estate, millennials driving the growth of cryptocurrencies are welcoming the opportunity to participate in deals that now permit fractional investing.
Tokenized real estate on blockchain is part of a trend toward "crowdfunded ownership" that is expected to open access to the largest asset classes, including residential and REITs, to anyone who wants to invest in real estate without having the funds for an entire property transaction.
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