Why Tokenization Could Be the Answer to Real Estate Liquidity Crunch However, amidst this surge of
RWAs, one asset class that has yet to get the attention it deserves is real estate. The latest statistics reveal that the global
real estate market was valued at $613 trillion in 2022, with projections showing it could eclipse
$729 trillion by 2028. However, despite this potential, real estate remains one of the most illiquid
asset classes. To provide
some context, assets like stocks and bonds are traded on a daily basis, but a piece of property can take more than a decade before it
changes hands. Of course, one of the main reasons is that property owners prefer to hold real estate as a long-term asset or because of the sentimental value attached to
generational ownership. According to a tokenization report by BCG, the opportunity to tokenize illiquid assets such as real estate, art, and select commodities stands at a whopping $16 trillion. This partly explains
why traditional financial companies that have been
anti-crypto are, for the first time, willing to join the digital asset
bandwagon.
