RWA tokenization driving investment liquidity and accessibility

Investing in real estate assets has long been a popular option for investors because of their ability to generate passive income and long-term appreciation. Historically, however, investment in property has been linked to significant challenges, such as lack of liquidity and the financial barrier to entry.

The tokenization of real estate assets emerges as an innovative solution to address these problems and transform the way investors participate in the real estate market. In this article, we'll explore how the tokenization of real estate assets, specifically at Reental, is transforming liquidity and accessibility into investments, offering exciting opportunities for investors of all levels.

Tokenization and its influence on liquidity and accessibility

In recent years, the total value of the global real estate market has reached a staggering 280 trillion dollars, eclipsing most other major asset classes and bringing it on a par with the value of total global debt accumulated by 2020.

Real liquidity has always been the handicap of the traditional real estate sector. Nowadays, with the tokenization of assets, it has been possible to create a secondary market that allows you to divest your capital from anywhere, at any time with a click. At Reental we have developed a method in which you can sell or buy your tokens to other Reental investors whenever you want.

In the real estate world, liquidity has always been a challenge, with costs estimated to be between 20% and 30% compared to other assets. The lack of digital markets, opacity in information and difficulties in entering and leaving have contributed to this illiquidity. However, with the fractionation of property through formulas such as tokenization, the door has been opened to capital that was previously inaccessible.

Tokenization addresses this problem by allowing for faster and more efficient transactions. Accessibility is also expanded, as investors of all levels can participate in high-quality real estate projects without the need for large sums of money. According to a study by the London-based consulting and accounting network Moore Global, which collects opinions from several experts in the field, he points out that even if only 0.5% of the global real estate market were tokenized in the next five years, it would be on track to become a 1.4 trillion dollar market.

In short, the liquidity provided by tokenizing RWA is more than just a convenience; it's the key to unlocking an ocean of investment possibilities and global market share. So why not take the first step to discover this new world and give value to liquidity?

Other Benefits of Investing in Tokenized Assets

1. Facilitates Buying and Selling: For example, real estate transactions tend to take time, with bureaucratic processes and transfers that can take weeks or even months. Tokenization changes this paradigm by tokenizing properties. Instead of waiting for the full sale of a property, interested parties can sell or buy real estate tokens for tokens quickly and efficiently. This allows for greater flexibility, resulting in greater liquidity in the underlying assets, transforming the real estate market into a more efficient way than previously limited capital mobilization.
   
   
2. Global Access: Tokenization removes barriers to entry by allowing investors of all sizes to access investment opportunities anywhere in the world, where they were previously reserved for large investors. It also allows investors to buy fractions of the underlying asset, meaning that there is no need to purchase it completely.

Comparing tokenization with traditional methods further highlights its benefits. While conventional real estate investments often require a substantial financial commitment and long time frames, tokenization offers flexibility and agility. The ability to buy and sell fractions of properties almost instantly contrasts with the rigidity of traditional processes.

This change in perception with robust and inflexible methods aligns with the growing exploration of tokenization by a global group of central banks. Announced by the Bank for International Settlements (BPI), this group is researching how tokenization can improve existing financial systems and increase market efficiency. The new Agorá Project focuses on researching how tokenized deposits and money can be integrated into a central programmable public-private financial platform. This approach promises to improve the functioning of the monetary system and offers new solutions using smart contracts and programmability.

This move reflects a wider trend in the financial industry, where financial service providers are beginning to seriously consider tokenization as a way to digitize real-world assets. Recent examples, such as the tokenization of gold by HSBC for investors in Hong Kong and the surpassing of the market value of U.S. Treasury bonds. Tokenized departments in public blockchains highlight the growing interest and adoption of this technology. This underlines the growing importance and transformative potential of tokenization in the global financial landscape.

Leveraging Tokenization with DeFi

During 2020, decentralized finance or DeFi has grown exorbitantly, presenting a value proposition unknown to date: individuals, thanks to the programming of smart-contracts, can carry out regular financial transactions, such as lending or borrowing, receiving interest or mortgaging their assets, without the need for intermediaries and without depositing custody of their tokens to a third party.

At Reental, we strive to be at the forefront of innovation in the market, working collaboratively with this vision. We've already designed a solid structure to ensure the liquidity of your tokens 24 hours a day, 7 days a week. However, our commitment to continuous improvement doesn't stop there. We are currently developing new features that will maximize the potential of your investments, including the ability to request credits with just one click. Soon we'll reveal all the details about this powerful tool, its benefits and how to make the most of it.

Thanks to the expansion of RWA demonstrating the power of tokenization, an average citizen can now become an elite investor. This technology makes it possible to invest in the best and most exclusive profitable products that were previously only available to a privileged few. As we have already seen at Reental, we offer you access to tools to optimize your investments, allowing you to finance your assets, such as reinvestment or collateralization.

This transformative change in finance not only improves current processes, but it also democratizes access to investment opportunities, allowing a wider spectrum of people to participate in the financial market and benefit from its advantages.

Conclusion

In short, the tokenization of real estate assets, especially through Reental, is revolutionizing property investment. Improved liquidity and accessibility offer exciting opportunities for novice and experienced investors. Are you ready to be part of this transformation in the real estate market?

In Reental, investors can participate with as little as 100 €/$, opening doors to a wider group of people. Tokenized property allows investors to enter the real estate market without the need to shell out large sums of money all at once. Not only does this broaden the investor base, but it also democratizes wealth and distributes opportunities more equally.