A study on the tokenization of real estate using blockchain technology has been published by Hamburg Commercial Bank AG (HCOB) and the Frankfurt School Blockchain Center (FSBC) at the Frankfurt School of Finance and Management. In it, they conclude that this method can revolutionize the conservative real estate market.
According to HCBO and FSCB, tokenization of real estate involves tokenizing or digitally securitizing the property rights associated with the real estate in direct form. This is done with the help of so-called blockchain technology. Blockchains are digital data records that are difficult to manipulate and form the basis of cryptocurrencies such as bitcoins.
According to HCOB and FSBC, this method could, among other things, save costs for issuers who are responsible for issuing securities. In addition, more investors could be reached because real estate can be broken down into the smallest tradable units through the method. For the study, officials surveyed and compared providers of tokenized real estate around the world. All results can be found by interested parties at: hcob-bank.de.
Source: hcob-bank.com
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