From Cointelegraph

May 25, 2025 10:00 AM:

During Paris Blockchain Week, Securitize COO Michael Sonnenshein sparked controversy by dismissing real estate as a sub-optimal asset for tokenization. Real estate is a $654.39 trillion asset class, with transformative potential beyond liquidity. Tokenization solves systemic inefficiencies in real estate transactions, offering democratized access to institutional-grade investments.

Sonnenshein argues that tokenization offers marginal improvements for traditional assets, but overlooks fundamental inefficiencies in real estate transactions. Tokenization technology can automate compliance through smart contracts, reducing fraud and paperwork. Real estate tokenization addresses systemic failures in the current market, making transactions more efficient and secure.

Real estate tokenization goes beyond liquidity demands of the onchain economy, providing meaningful access to everyday investors. By fractionalizing ownership, investors can participate with $100, receive income distributions, and trade positions on secondary markets. Tokenization enables democratized access to prime real estate properties historically exclusive to accredited investors, teachers, nurses, and middle-class families.

Tokenization technology revolutionizes fractional investments in real estate, enabling transparent, secure opportunities for individual investors. By dividing large projects into tokens, investors can build personalized portfolios with reduced barriers to entry. Outdated regulatory frameworks hinder the evolution of real estate tokenization, despite the UAE government’s initiative to tokenize $1 billion in assets.

BlackRock’s tokenized money market fund BUIDL is approaching $3 billion in assets, signaling institutional interest in tokenized investment vehicles. UBS Asset Management, Hamilton Lane, and Franklin Templeton have also launched tokenized vehicles, indicating a shift in traditional finance views. The network effect of financial infrastructure exponentially increases connectivity and liquidity pools, paving the way for mass adoption.

Real estate tokenization democratizes wealth creation by allowing anyone to build diversified property portfolios. This transformative potential extends beyond liquidity metrics, providing access to institutional-grade investments for retail investors. Despite skepticism from some executives, the adoption of tokenized real estate and other assets will continue to grow, democratizing access to historically exclusive investments.

Read more at CoinTelegraph: Crypto leaders are wrong about tokenized property