Tokenization service

With Blocksquare's tokenization protocol, anyone can offer a new service to real estate owners worldwide.

Tokenization is a service that requires some knowledge and understanding, sure, but once mastered, it becomes a process most people can easily repeat. Currently, we execute each tokenization internally, but in time, our Certified Partners will be able to use the Admin Panel to execute tokenizations on their own.

As of writing, the protocol supports only real estate assets directly owned by legal entities, but soon it will be possible to tokenize assets owned by individuals too e.g. homes, apartments, houses...

Why tokenize a real estate asset?

Tokenization is changing how we invest in real estate. Taking us from a world where a property is transected once a decade, to a new reality where hundreds of transactions of that same real estate asset are executed within the minute.

Tokenization offers the ability to match available market demand by reaching investors of any size. A solution that can increase liquidity for a wider selection of players in the commercial real estate investment space.

There may be various reasons for why one would consider tokenizing a real estate asset.

1. Raising capital

The most straightforward use case is capital raising. Wether the motives involve raising for new developments, property acquisitions or refinancing debt, to efficiently raise funds for a real estate investment deal, it is required for the asset owner to partner with an established marketplace with a large enough user base for the campaign to be successful.

As the market is still in the very early stages, the chances are there is no established marketplace operating in your region. Blocksquare offers the easiest way of establishing such marketplace without spending absurd amounts of money and time on technology.

To perform the service of tokenizing real estate for property owners, you don’t need to necessarily operate a marketplace. See below some of the potential benefits and target customers that might be requesting tokenization services.

2. Upsell to home buyers

Are you a real estate developer? Do you primarily develop multi-residential properties?

If the above is true, you are most probably struggling to attract buyers for the last 10-15% of unsold units, spending about 40-60% of your marketing budget to earn your margin as a developer. What if you could use tokenization to upsell to the customers who already bought an apartment? What if this could not only expedite your process, but also save you money on marketing?

With tokenization, you can take the residential units you know will take longer to sell and bundle them under 100,000 tokens. The units can be leased out for long or short term to generate additional rental revenue to token holders — the customers who are buying their property traditionally.

Anyone can create their own real estate tokenization business. All we need is partners from various places around the world that are able to take owners through the tokenization process. Just like anyone can drive an Uber, you can now become a tokenization agent.

3. Stake and earn crypto

Do you know anyone who would like to stake their property to earn some crypto on the side?

There are many businesses that own a real estate asset and would love to earn with it, e.g. warehouses, production facilities, small offices, shops... The sweet spot are SMEs — the entrepreneurs running a small to medium sized company. They are the ones that will become the catalyst and change the real estate industry with Web3.