Crypto leaders are wrong about tokenized property
Michael Sonnenshein, COO of Securitize, criticized real estate as a sub-optimal asset class for tokenization during Paris Blockchain Week. Real estate, valued at $654.39 trillion, has significant inefficiencies in traditional transactions, including lengthy paperwork and high fees. Tokenization can address these issues through smart contracts, automating compliance and reducing fraud. It democratizes access to real estate investments, allowing participation with minimal capital and enabling fractional ownership. This shifts the focus from liquidity to meaningful access for everyday investors. The emergence of tokenized investment vehicles from major financial institutions indicates a growing acceptance of tokenization technology. The potential for democratized wealth creation through real estate tokenization is substantial, challenging the traditional barriers faced by retail investors.
