Asset Tokenization in Financial Markets 2025

Contents28 Real estate Real estate as an asset class refers to investments in real property and is characterized by its physical nature and potential for both income and capital appreciation.52 The global real-estate market was valued at approximately $379.7 trillion at the end of 2022, encompassing residential, commercial and agricultural properties.53 Tokenizing real estate involves converting property ownership into digital tokens on a programmable ledger, facilitating fractional ownership and potentially enhancing liquidity in this traditionally illiquid market. The total value of real estate brought on-chain is estimated to be between $4 billion and $20 billion, underscoring a large remaining addressable market. Real estate could benefit from tokenization for these reasons: 1. Enhances information symmetry Today’s real estate markets are isolated and do not have connected systems of record. Tokenization could help with streamlining these records for stronger information symmetry. For example, a district administration in India digitized 700,000 land records dating back to 1950 on the Avalanche blockchain, addressing challenges associated with requests for information regarding records and their verifiability. 2. Expands accessibility This process can streamline transactions by reducing intermediaries and administrative overhead, making real- estate investment more accessible.54 However, regulatory uncertainties between jurisdictions and technological integration issues exist. Outstanding design choices remain related to the impact of tokenizing real estate on the local economy and deed transferability.55 Existing investment vehicles such as real estate investment trusts (REITs), ETFs and direct funds offer similar benefits, potentially limiting the appeal of tokenization. Despite these hurdles, successful cases demonstrate the potential of this approach to democratize real-estate investment. Tokenized assets