Issue Real Estate Token:

Are you a real estate developer, owner or agent looking to raise money for a project, or sell fractions off your existing property?
If so, tokenization might be a path for your business.
At RealEstate.Exchange we facilitate trading of tokenized real estate. Therefore, for issuing real estate as tokens on the blockchain, your first step should be reaching out to DigiShares.
The Security Token Offering Process

If you are raising capital, doing so on the blockchain can provide various benefits such as fractionalization, lower barriers, the possibility for investors to trade and transparency of governance.


Step 1: The Asset(s)

Determine the specific asset(s) to tokenize and the type of security to be issued (equity, debt, profit/ revenue share etc.).


Step 2: The Legal Structure

Choose the right jurisdiction and regulatory exemption. Create SPV entities. File forms with the regulator when relevant.


Step 3: The Technology

Choose a Blockchain protocol and Token configuration. Choose the right integrations: KYC/AML, e-signature, custody, payments. Set up and deploy the platform with all the information investors need to make an informed decision.


Step 4: Distribution

Create a distribution/ marketing/ investor acquisition plan. On your dashboard you can see the amount of funds that you have raised in real-time.


Real Estate Tokenization is the process of converting real estate assets into digital tokens using blockchain technology. Each token represents a fractional ownership of the property, allowing investors to purchase smaller portions of high-value real estate. Tokenization enables increased liquidity, accessibility, and efficiency in real estate investments by facilitating easy trading and reducing barriers to entry.

Real Estate Tokenization offers several advantages to investors. Firstly, it allows for fractional ownership, enabling investors to participate in high-value properties with lower capital requirements. Additionally, tokenization enhances liquidity, as investors can trade their tokens on secondary markets, providing an opportunity to exit investments more easily. Furthermore, the use of blockchain technology provides transparency, immutability, and increased security in real estate transactions.

Secondary trading in Real Estate Tokenization refers to the buying and selling of real estate tokens after the initial offering or issuance. Once a property has been tokenized and fractional ownership shares are distributed to investors, these tokens can be traded on platforms like RealEstate.Exchange. Secondary trading allows investors to exit their positions, capitalize on market opportunities, and provides flexibility in managing their real estate investments.

While Real Estate Tokenization offers numerous benefits, there are inherent risks that investors should be aware of. One significant risk is market volatility, which can impact token prices and potentially lead to losses. Additionally, regulatory compliance is essential, as different jurisdictions have varying rules and regulations concerning tokenized assets. Investors should also be cautious of potential scams and security breaches in the digital asset space. Conducting thorough due diligence and working with reputable platforms are essential steps in mitigating risks.

Asset valuation in Real Estate Tokenization involves assessing the value of the underlying property to determine the price of each token representing fractional ownership. Property valuation methods such as the income approach, market comparison, and cost approach may be used to determine the property’s worth. Additionally, factors like location, rental income potential, property condition, and market trends can influence the asset’s valuation. Transparent and accurate valuation processes are crucial for ensuring fair pricing and investor confidence in tokenized real estate assets.

Jurisdiction plays a pivotal role in Real Estate Tokenization and secondary trading, as it governs the legal framework and regulatory environment within which these activities take place. Different countries and regions have varying laws and regulations concerning tokenized assets and digital securities. For Real Estate Tokenization, the legal process of tokenizing a property and issuing tokens is subject to the jurisdiction in which the property is located. It is essential for platform operators and investors to comply with local securities laws, property regulations, and financial market guidelines to avoid legal repercussions. Similarly, when it comes to the secondary trading of real estate tokens, the jurisdiction in which the platform operates and where investors reside can impact the platform’s licensing requirements and the rules surrounding token trading. Cross-border trading can further complicate matters, as it may involve compliance with multiple jurisdictions. To ensure a compliant and legally sound platform, RealEstate.Exchange implements robust Know Your Customer (KYC) and Anti-Money Laundering (AML) to comply with jurisdictional requirements. Investors must be aware of the legal implications and potential restrictions related to Real Estate Tokenization and secondary trading in their respective jurisdictions. It is crucial to seek professional advice and understand the regulatory landscape to make informed investment decisions and ensure adherence to local laws.

The European Union (EU) and the United States have distinct regulatory bodies overseeing financial markets and investments. The EU has the European Securities and Markets Authority (ESMA), while the US has the Securities and Exchange Commission (SEC). Both entities have specific rules and reporting requirements for investments, including those involving tokenized assets. To comply with the unique regulations of each jurisdiction, RealEstate.Exchange may choose to segregate investors based on their location. The legal environment surrounding tokenized assets and digital securities can differ significantly between regions. For instance, some countries within the EU may have more favorable regulations for certain types of investments, while others might be more restrictive. Similarly, the US has a complex regulatory landscape for securities offerings and trading. To avoid potential conflicts and ensure compliance, it’s common to separate investors based on their geographical location.

Different regions have diverse investor protection laws and mechanisms. By segregating investors, RealEstate.Exchange can tailor its platform’s terms and conditions to comply with the specific investor protection requirements of each jurisdiction, thereby offering enhanced security and transparency to its users.

Liability is the legal responsibility or obligation of an individual or entity for their actions or omissions that cause harm or damage to another party. In the context of Real Estate Tokenization and secondary trading on RealEstate.Exchange, liability can apply to various stakeholders involved in the process. Here are some key aspects of liability to consider:

Investors on our platform have a responsibility to conduct due diligence and make informed investment decisions. If an investor neglects to review the relevant information, risks, or legal aspects of a tokenized real estate investment and suffers losses, they may bear liability for their own investment choices.

The entities or individuals responsible for issuing real estate tokens must ensure that the assets being tokenized are accurately represented and comply with all legal and regulatory requirements. If the issuer provides false or misleading information about the underlying property or fails to meet regulatory standards, they could face legal liabilities.