Real estate tokenization using digital assets remains one of the future use cases of blockchain technology. Many businesses and individuals have tried the concept, but due to a lack of regulatory clarity, the trend hasn’t taken off. Still, a few companies are pushing towards tokenizing real estate digital assets such as NFTs. The latest example is an Atlanta home tokenized as an NFT that sold for $214,882 in less than three minutes.
The sale is the result of a collaboration between Roofstock, a tech startup that focuses on real estate, and RealT, another startup focused on tokenizing the sector and enabling fractional investment. Roofstock sold the George-located home to RealT through a tokenized Ethereum-based NFT on Tuesday.
According to Remy Jacobson, cofounder and chief executive at RealT, the company imposed heavy restrictions around the float of the initial fractionalization offering. With the first round of transactions going down on OpenSea and a second to follow later.
Commenting on the first of many collaborations between the two companies, a spokesperson for RealT told Blockworks that “RealT acquires properties sourced by Roofstock into C-Corps, which then sell tokenized shares to investors.” The goal is to use tokenized equities that originate in the US and provide blockchain based exposure to investors in other nations.
More NFT Tokenized Properties Will Be Offered
In total, there were 722 orders placed with 670 unique token holders by the end of the sale. The transaction would take two minutes and 46 seconds, and the average purchase would be worth approximately $298 in ETH.
According to Sanjay Raghavan, vice president of Web3 initiatives at Roofstock, the company normally creates a separate Wyoming LLC for every property they own. This acts as a shell where its corresponding NFT is held.
He goes on to add that “the property in question can then be bought and sold on various NFT marketplaces, resulting in an instantaneous sale and settlement.”
As mentioned earlier, this is the first of many collaborations between the two entities. It’s a welcome move for anyone that would like to venture into real estate but doesn’t have the large capital outlay required to snap up a given property. Now they can own a fraction of it and sell these NFTs on marketplaces.