Exploring the Future of Real Estate Tokenization on Blockchain: Insights from Sanjay Raghavan
Summary:
Sanjay Raghavan, VP of Web3 Initiatives at Roofstock onChain, discusses the process and potential benefits of tokenizing real estate on blockchain in an interview on Cointelegraph’s Hashing It Out podcast. He explains how companies can sell property via nonfungible tokens (NFTs) linked to the ownership of an LLC. The complexities of U.S. state regulations on asset tokenization, the role of crypto-culture in driving diversification into real estate NFTs, and the future possibility of asset fractionalization for non-U.S. citizens are also top of the discussion.
Utilizing blockchain technology to tokenize tangible assets is regarded as a significant application that could boost adoption in the Web3 realm. Elisha Owusu Akyaw, the presenter of Cointelegraph’s Hashing It Out podcast, talks to Sanjay Raghavan, the VP of Web3 Initiatives at Roofstock onChain, in the 35th episode. Their discussion revolves around the tokenization of real estate on blockchain, its interplay with nonfungible tokens (NFT) market, decentralized finance domain, and the fractionalization concept of NFT. Furthermore, he elaborates on the potentially complex rules pertaining to online asset tokenization and the risks involved in Web3 real estate platforms.
Raghavan sheds light on how NFTs facilitate real estate sale on the blockchain. Firms looking to sell properties on-chain need to complete the initial steps of buying the asset and launching a limited liability company (LLC). Subsequently, an associated NFT is generated representing the ownership of the LLC. The customers, upon buying the NFT, indirectly acquire the LLC, signifying they are the new property owners. However, Raghavan indicates, in countries like the United States, the rules and regulations for online asset tokenization often prove complicated owing to distinct compliance requisites across 50 separate jurisdictions.
Raghavan believes cryptocurrency enthusiasts might explore real estate tokenization as a way to diversify their portfolio. Given the high correlation of most industrial investments with Bitcoin's price, he feels investing in a steady, less correlated asset like real estate NFT might prove attractive to these individuals.
Raghavan discusses how asset fractionalization, specifically those of NFTs, might require a rigorous security program making it less appealing for U.S. based companies. Alternatively, it might present an opportunity for non-U.S. individuals in the future if international firms purchase properties and trade NFTs in other markets.
The detailed episode of 'Hashing It Out' can be heard on platforms like Apple Podcasts, Spotify, Google Podcasts or TuneIn. For further insightful podcasts, visit the webpage of Cointelegraph Podcasts.
Disclaimer: This article is purely informational and should not be construed or treated as legal or investment advice. The opinions put forth in the article are solely the author's and do not represent that of Cointelegraph.
Published At
11/2/2023 12:20:00 PM
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