Real World Assets (RWAs) have hit the crypto scene like a storm, gaining huge exposure in a relatively short space of time, and trending on Google daily. These tokenized assets utilize blockchain technology to digitise real world assets, such as real estate, into digital tokens — granting ownership or fractional ownership to holders.
By fractionalizing once illiquid assets, RWA tokenization opens the gateway to both increase liquidity, and investor access to once inaccessible assets — often due to entry cost barriers. This enhanced access and liquidity combination essentially democratizes the RWAs tokens being purchased.
RWAs hold the potential to redefine both intangible and tangible asset transactions, and as such, a number of major players have emerged to develop this innovation even further. Amongst these innovators, Blocksquare stands out from the rest, delivering a multifaceted approach. Other entities, such as Soil, set out to make RWAs impact through their unique decentralized credit protocol.
Blocksquare: Leading RWA Tokenization
Blocksquare is an award-winning blockchain-based real estate tokenization ecosystem, lead by three co-founders that hold over 40 years experience across tech, legal, product, sales and more between them. Leading innovation in the real estate tokenization sphere, Blocksquare offers far more than just tokenization of assets.
By developing its own Web3 protocol and blockchain infrastructure, Blocksquare is the only player in the RWAs space that offers this one-stop solution. The dual capability of offering both scalability and security for users comes from this three-pronged approach — ultimately delivering a holistic real estate tokenization ecosystem.
This composition gives Blocksquare a major edge in customization, scalability and security for all clients seeking an ease-of-access path into real estate tokenization exposure, and investment.
Real Estate Tokenization Protocol
Blocksquare’s real estate tokenization protocol involves the creation process of ‘PropToken’ standard ERC-20 smart contracts. With a max issuance of 100,000 digital tokens — representative of real estate assets — these smart contracts enable specific real estate identification, and transaction rule limitations to be placed per the issuer’s requirements.
A Public Corporate Resolution (PCR) is created to link a real estate property to the PropToken smart contract. The PCR is then signed by the legal representative mandated by shareholders of the issuing legal entity and made public via a distributed file system called IPFS.
Investors who hold tokens for a given property can use its PCR to appeal in court in the unlikely scenario that an issuer stops providing their payments, dividends, etc. This ensures investor security should any bad actors appear in the process. Furthermore, thanks to payments on the smart contract being recorded on the Ethereum (ETH) blockchain, they can be used as proof for legal disputes, adding a further layer of investor security.
White-Label Marketplace
Blocksquare’s platform offers clients the ability to create, list, issue, sell, distribute, manage, track and trade tokenized properties via Blocksquare’s protocol. This means clients can avoid the hassle of establishing their own branded, coded and fleshed out tokenized marketplace — without the time expenditure and without the excessive associated costs.
Designed to power hundreds of other platforms globally, Blocksquare makes it possible for clients to start connecting their investors to real estate investment deals in their region. Furthermore, clients can provide their investors with the ability to buy and sell their real estate tokens online, with a simple token distribution process for thousands of token holders.
Leveraging blockchain technology to provide transparent trading peer-to-peer (P2P), investors won’t be hindered by intermediaries and can trade with ease. Clients can even upload and share investors reports and buyback tokens from investors in situations where properties are being sold to third-party buyers. Blocksquare’s buyback smart contracts allow the creation of pre-negotiated offers to investors and complete management of the buyback process.
DeFi Bridge
Oceanpoint is the finishing layer to Blocksquare’s multifaceted approach — connecting decentralized finance (DeFi) to real estate assets via tokenization.
The Oceanpoint protocol is a set of smart contracts built on Ethereum that function to produce an open-end decentralized autonomous organization (DAO).
The Oceanpoint DAO — designed with the potential to own an unlimited pool of real estate assets — is backed by the real estate economy, and allows anyone to contribute and participate without legal restrictions.
Soil: No Mess RWA Investing
Soil is another player helping grow the RWA space by providing a decentralized credit protocol that aims to deliver global access to RWA investments. Providing secure stablecoin yield and instant access to global RWAs, Soil offers a blockchain-based infrastructure that adheres to regulations — without sacrificing scalability.
Poised to be a strong player in RWAs’ future growth, Soil’s debt marketplace facilitates the connection between borrowers and lenders without straying from decentralized principles.
Lofty AI: Automating RWAs Valuation
Lofty AI is the third and final player we’ll mention here that can play it’s part in progressing the RWAs space — this time, through the power of artificial intelligence (AI).
Lofty AI’s platform provides a tokenized real estate marketplace with a twist, it utilizes AI to determine which properties will most likely increase in valuation the quickest. Using this data, investors can choose their investments more wisely, and get involved for as little as $50.
Innovating Future RWAs Growth
The global shift towards RWAs tokenization is steadily snowballing as real estate investment accessibility becomes increasingly possible for even small-time investors. Key players like Blocksquare and Soil are pushing forth into the RWAs space, proposing, creating, and delivering innovation solutions for even further growth in the industry.
Blocksquare’s unique tokenization capabilities paired with its blockchain infrastructure and Web3 protocol make it a powerhouse in the RWA space. Equipped with a plethora of versatile smart contracts with varying functionalities, Blocksquare is well-equipped to lead the way to a more efficient future RWAs market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
