Tokenization
Real estate tokens
Updated 2026-04-02
Tokenizing real estate means issuing digital tokens that represent rights to a property or to the income it produces. The token itself does not replace a deed; it sits on top of a legal structure that does the real work.
The usual structure
- A special purpose company (SPV) buys or already owns the building.
- Shares or debt of the SPV are represented by tokens.
- Token holders receive a share of rental income or sale proceeds according to the contract.
Why do it
Tokens can make it easier to split ownership into small parts, automate payouts and keep a transparent register of holders. In theory they also make secondary trading simpler.
What it does not solve
The building still needs a manager, insurance, repairs and tenants. The land registry still records the SPV as owner. If the SPV fails or the manager misbehaves, token holders depend on ordinary courts and contracts.
Questions to ask
- Which jurisdiction governs the SPV?
- Is the offering registered with a securities regulator?
- Who values the property and how often?