Tokenizing real estate is no longer a concept for the future. It’s happening now.
● What’s tokenized: Not the building itself, but financial rights like equity, debt, or income.
● Why it matters: This approach allows issuers to broaden investor access, automate administration, and maintain full regulatory compliance across jurisdictions.
● How it works: Brickken helps you issue and manage compliant asset-backed tokens. No coding or blockchain expertise needed.
Real estate tokenization is the process of representing financial rights linked to a property into digital tokens on the blockchain.
Examples of these rights may include:
The token does not represent ownership of the physical building. Instead, it represents legally enforceable rights that are already recognized under existing law.
To ensure enforceability, the real estate is typically held through a legal wrapper, such as an SPV (Special Purpose Vehicle) or a trust. The token reflects the same legal characteristics as the underlying right and is governed by off-chain legal agreements.
SPV (Special Purpose Vehicle):is a company created specifically for the tokenization process. Investors acquire economic or governance rights in the SPV through tokens, rather than holding the property directly.
Trust Structures: In certain jurisdictions, a trust structure may be used, where a trustee holds the asset on behalf of token holders, who are the beneficiaries.
In both cases, legal agreements connect the token to the real-world rights. The blockchain acts as an execution and record-keeping layer, not a substitute for the legal framework.
Several models are used depending on the investment strategy and regulatory context:
Regardless of the model, compliant tokenization requires off-chain documentation, investor verification, and clear alignment with applicable local laws.
Step 1: Asset and legal preparation
The asset and associated rights are identified, and a legal structure is established to hold the property. Contracts define the rights that will be represented digitally.
Step 2: Token issuance
Tokens are issued on a blockchain through smart contracts. Their classification, such as equity or debt, depends on their economic function, not the technology used.
Investor onboarding includes KYC and AML checks in line with regulatory requirements.
Step 3: Ongoing management and transfers
Smart contracts can automate distributions, reporting, and governance processes.
Transfers are restricted to verified investors and may include lock-ups or jurisdictional limitations.
By 2035, over $4 trillion in real estate is expected to be tokenized. Early movers are already gaining an edge.
Tokenized real estate instruments are subject to the same regulations as their traditional equivalents.
Platforms like Brickken provide the technology with several tools to be a compliant infrastructure for financial institutions to tokenize, manage, and distribute real-world credit products securely.We support:
Currently powering tokenization in 16+ countries and $300M+ in assets.
Real estate tokenization offers institutions a way to modernize asset distribution and management while preserving established legal protections.
It enables fractional access, operational efficiency, and optional liquidity within a compliant framework.
Platforms like Brickken provide the infrastructure to issue, manage, and distribute tokenized real-world assets in line with regulatory requirements.
Ready to tokenize?Want to launch a tokenized real estate offering?
Book a consultation with our experts.