Tokenized real estate trading platform launches on Polygon

Real-world plus (RWA) tokenization level DigitShares is bringing tokenized existent property trading to Polygon with the motorboat of RealEstate.Exchange, besides known arsenic REX.

According to a March 25 announcement, REX is designed to connection retail investors a compliant venue for fractional spot investments successful a secondary market, perchance addressing the industry’s existing liquidity constraints. As Cointelegraph explained, secondary RWA trading platforms supply liquid off-ramps for investors looking to currency retired of their holdings. 

The REX level volition motorboat with 2 luxury spot listings successful Miami, Florida, including The Legacy Hotel & Residences, a 529-unit operation managed by existent property concern level FraXion, and a 38-unit residential analyzable managed by Trade Estate.

A thoroughfare presumption of The Legacy Hotel & Residences successful Miami, Florida. Source: Google Maps

DigiShares CEO Claus Skaaning told Cointelegraph that REX intends to enactment “various spot types, including residential, commercialized and luxury existent estate.” In summation to the 2 Miami properties, REX has “5-6 further properties successful the pipeline,” said Skaaning.

Polygon’s proof-of-stake blockchain was selected owed to its debased transaction costs, accelerated colony times and robust security, the institution said. 

Polygon is the 13th-largest blockchain based connected 24-hour trading volume, according to CoinGecko. 

REX is licensed successful the United States done Texture Capital, a registered broker-dealer with the Securities and Exchange Commission. The level is participating successful an EU blockchain sandbox arsenic it seeks registration nether the Markets successful Crypto-Assets (MiCA) and Markets successful Financial Instruments Directive (MiFID) frameworks. 

According to the announcement, REX is besides eyeing registrations successful South Africa and the United Arab Emirates. 

REX’s genitor company, DigiShares, has facilitated betwixt $100 cardinal and $200 cardinal successful tokenized existent property assets since 2018.

DigiShares is 1 of respective companies vying for a portion of the tokenized existent property market. In February, Blocksquare introduced a existent property tokenization framework successful the EU, which would let spot owners to tokenize economical rights tied to property.

The United Arab Emirates has besides emerged arsenic a hotbed for tokenized existent estate, with Mantra Finance securing a licence to grow RWA services successful Dubai.

Related: Tokenization tin alteration existent property investing — Polygon CEO

RWA marketplace gaining traction

The RWA tokenization market, which extends beyond existent property to see accepted fiscal assets, creation and intelligence property, has reached a cumulative $62 billion, according to information from Security Token Market (STM). 

The marketplace capitalization of tokenized assets continues to grow. Source: STM

STM information presently tracks 595 existent property tokens, which correspond the largest fig of progressive tokens by plus people but are overmuch smaller than indebtedness and equity tokens successful presumption of monetary value. 

Although existent property tokenization remains successful its aboriginal days, Mantra co-founder and CEO John Patrick Mullin told Cointelegraph that the manufacture could beryllium worthy trillions successful the adjacent future. 

“If you’re looking astatine the basal ecosystem close now, it’s inactive a driblet successful the water compared to wherever we expect this to spell successful the mid-to agelong term. It’s successful the tens of billions. We’re expecting this to spell into perchance trillions of dollars of assets onchain,” helium said.

Magazine: Block by block: Blockchain exertion is transforming the existent property market