With Bitcoin dropping by more than 12% in the past seven days and Ethereum by 24% in the past month, investors are seeking alternatives in these unstable market conditions. To diversify their portfolios with less volatile bets, global investors are targeting the $337T real estate market.

The real estate market is known for its entry barriers due to the heavy capital investment required. However, several US-based crypto projects are changing this through real estate tokenization. 

One project leading this revolution is Landshare. So, let’s see what’s driving this change and why tokenized real-world assets (RWAs) are seen as the next big thing in the investment circuit right now.

Real Estate Tokenization Industry to Reach $19.4 Billion by 2033

Traditional real estate investing has mostly been a playground for the ultra-wealthy and institutional players. A single property often requires six-figure minimums, while cross-border deals involve high legal complexity. 

RWA tokens change the game. By fractionalizing property ownership, blockchain helps investors buy shares for as little as $1. This shift mirrors the stock market’s evolution from exclusive trading floors to smartphone apps. But, of course, decentralization plays a huge role here.

Moreover, regulatory clarity under frameworks and the SEC’s maturing stance on security tokens provide a stable foundation. Meanwhile, institutional giants like JPMorgan and BlackRock have begun experimenting with tokenized assets. This too brings in confidence in the model for retail investors.

How U.S. Crypto Projects Are Leading the RWA Change?

While global platforms have made healthy progress in their tokenization efforts, American crypto projects like Landshare hold distinct advantages:

Institutional Trust: U.S. legal structures attract risk-averse capital.
Tech Infrastructure: Strong DeFi platforms (e.g., Chainlink, Aave) allow for smooth asset management.
Liquidity: Selling real estate in the US can be challenging because of the legal complexity. However, trading RWA tokens is quite simple and provides almost instant liquidity to the investors. 

Why Landshare Stands Out as a Top RWA Contender?

Real Utility Over Hype: Investors actively seek value-adding projects rather than hype machines. Landshare, with its tokenization utility, is a strong contender for long-term gains in this digital economy. Unlike speculative RWA projects, Landshare’s security tokens represent legal stakes in U.S. properties. Investors also earn passive income from rent.

Scarcity & Burns: With 5.34 million tokens (all circulating) and a burn mechanism on every RWA purchase, LAND is inherently deflationary in nature. In contrast, many competitors have no supply cap or burning mechanisms.

Real Properties Tokenized: Landshare has already sold 4 U.S. homes via BNB Smart Chain, with deeds tied to RWA Tokens. This shows its focus on actually profiting from real estate deals, unlike competitors relying primarily on hype for price growth. 

Revenue Model: Rental income and appreciation distributed to investors; with annual returns exceeding 8.7%.

BNB Chain Advantage: Ethereum’s gas fees make micro-investments impractical. Landshare’s BNB Chain base allows for fractional ownership and targets retail demand.

Undervalued Entry: At a $3.11 Million market cap, Landshare offers higher growth chances than other overvalued RWA competitors despite similar revenue streams.

SAFU Investment: Structured under U.S. regulatory guidelines, Landshare has given special importance to compliance and security.

Moreover, LAND has delivered consistent ROI through property appreciation and rental distributions. This undervalued status highlights a perfect opportunity for investors looking for projects with high potential.

Conclusion 

So, the road ahead is clear: tokenization will absorb a growing share of the $337T real estate market. For investors, these benefits offer balance and profitability:

Diversification: Allocate fractions of capital across global markets.
Liquidity: Trade property shares 24/7 on secondary markets.
‍Transparency: Blockchain’s immutable ledger reduces fraud risk.

For U.S. projects, the challenge lies in scaling while maintaining compliance. This gap too has been filled by Landshare. With plans to expand its property portfolio, this RWA token allows users to invest in the real estate industry at low costs and earn high long-term gains.  

At Landshare, we aim to make real estate investment accessible to everyone. By tokenizing real estate assets, we allow users to invest in prime properties worldwide without the massive upfront cost. 

We’ve brought out our latest update: the Loan Protocol. Through this, token holders can access liquidity without selling their assets by using Landshare Tokens (LAND) or Real World Asset Tokens (LSRWA) as collateral. 

This creates a mutually beneficial scenario for both borrowers and lenders. Borrowers gain the cash flow they need, while lenders earn consistent returns through interest. How does this work? Let’s discuss 

The Promise of Loan Protocol 

If you’re holding LAND or LSRWA tokens, why let them sit idle when you can borrow USDC and put your assets to work? 

With the Landshare Loan Protocol, you don’t need to sell your valuable tokens to access liquidity. Instead, you can use them as collateral and get the funds you need while retaining ownership of your assets. Whether you want to cover personal expenses, make new investments, or take advantage of other opportunities by borrowing USDC through Landshare, you can maximize tokens' potential without parting with them.

As a lender, the protocol helps you earn 10% APY by contributing USDC. 

How does it work? 

The Landshare Loan Protocol has two distinct pools: one for LSRWA tokens and another for LAND tokens. Each of these pools has a set maturity date, the deadline by which loans must be repaid. If the loan isn’t repaid by this date, the collateral used by the borrower will be liquidated, meaning it will be sold to recover the loan amount. 

The completion percentage displayed for each pool shows how much time has passed in the loan term. For example, if the completion percentage is 50%, half the term is completed, and the same amount of time remains before the maturity date.

Once the loan term ends and the maturity date is reached, lenders will get their USDC back along with the interest earned during the loan period. This interest comes from the borrower’s repayment and is set at 10% APY. This means borrowers pay 10% in interest, and lenders earn 10% on their funds. As a lender, your USDC is secured by the collateral the borrower has provided—either LAND or LSRWA tokens. This makes the system secure for lenders since their funds are protected.

The protocol uses over-collateralization to reduce the risk for lenders. This means that borrowers must provide more collateral than the value of the loan they’re taking. 

For example, in the LSRWA pool, a borrower can only withdraw up to 50% of the value of their collateral. So if someone deposits $100 worth of LSRWA, they can only borrow 50 USDC. This extra collateral helps to protect lenders because the loan is backed by more than the borrowed amount, lowering the chances of a loss in case the borrower defaults.

If a loan is not repaid by the maturity date, the collateral (either LSRWA or LAND) will be sold to pay back the loan amount, including any interest. A 10% liquidation fee is also levied.  

After the liquidation, if there is any remaining balance from the sale of the collateral, the borrower can claim it. This process ensures that lenders are compensated even if a borrower fails to repay the loan.

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How to borrow USDC using LSRWA and LAND

The process of borrowing USDC by pawning your LSRWA and LAND tokens is straightforward. Let’s walk through it: 

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1. As discussed, there are two pools for each of the tokens: LSRWA and LAND. Press the Borrow button of the pool against which you want to borrow USDC. 

2. Next, a pop-up will appear on your screen. Enter the amount of USDC you wish to borrow. Once you do that, the collateral amount will be displayed immediately. 

3. Now, simply press the Borrow button and approve the transaction in your wallet. You will be able to see the borrowed USDC in your wallet. 

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How to lend USDC using LSRWA and LAND

You can lend your stablecoins through this protocol and earn 10% APY. The process is simple. Let’s look at it: 

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1. This time, press the Supply button. 

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2. Next, a pop-up will appear on the screen. Enter the amount you can supply and hit the " Supply" button.

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Enhanced Capital Efficiency with $LSRWA

We’re rolling out a new borrowing strategy that unlocks triple the earning potential for our users. You’ll be able to borrow against staked LSRWA-USDT LP Tokens, allowing you to stack rewards from three sources at once:

1.  LSRWA appreciation
2.  LSRWA-USDT LP staking rewards
3.  Gains from borrowed USDC

But wait, there’s more! 👀

If you buy $LSRWA via the DS Dashboard, you’ll earn NFT Credits. These credits can be used to mint NFTs and unlock even more rewards, taking your real estate investing to the next level with a touch of DeFi magic!

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How the new borrowing strategy will work: 

1. Create LP Tokens: Pair USDT and LSRWA on DS Swap to generate LSRWA-USDT LP Tokens.

2. Wrap and Stake: Deposit LP Tokens into a wrapped contract to keep earning LAND yields.

3. Borrow USDC: Use your wrapped LP Tokens as collateral and unlock USDC via our Loan Protocol.

💡 Why is this exciting? This strategy supercharges your capital efficiency, letting you grow your portfolio without missing out on staking rewards or token gains.

Final Note

Borrowing through the Landshare Loan Protocol offers more than just quick access to cash—it’s an opportunity to make your tokenized assets work for you. You don’t have to choose between selling your tokens and staying liquid. 

With a fixed maturity date and competitive interest rates, this system allows you to borrow responsibly while keeping your tokens safe. 

Take advantage of the liquidity your assets can provide through the Landshare Loan Protocol.

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Trump has won US elections, and with his second term comes a golden age for crypto, with positive regulations and unlimited opportunities. Bitcoin has already touched $91K in jubilation, with a brand new bull run already on the road. Altcoins are not behind either; in fact, CoinGecko’s 2024 Q3 crypto industry report highlighted RWA, memecoins, and more as the most popular crypto narratives!

RWA or real estate tokenization has had a good run in 2024, setting the sector up as one to see tremendous growth in this decade. A recent Tren Finance research report even predicts a 50x growth for RWA tokenization by 2030.

Out of the most popular RWAs to be tokenized this far, real estate is up there. A traditionally illiquid market now turned liquid by RWA tokenization, real estate tokenization is quickly gaining traction. 

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The hype surrounding RWA tokenization

RWA tokenization refers to the process of converting ownership over real-world assets (RWAs) like real estate, art, commodities, or financial instruments like bonds or equities into digital tokens on a blockchain. One asset can be turned into one or a series of blockchain-based tokens, so an asset can essentially be purchased by multiple investors. This makes certain markets previously only accessible to HNIs and enterprises more accessible and liquid, lowering entry barriers for novice investors.

Each RWA token can represent complete or fractional ownership of an underlying asset, allowing it to be traded, transferred, or held digitally.

Multiple perks to RWA tokenization make the sector so popular to RWA owners and crypto investors alike. Some of them are:

• Accessibility: As just mentioned, tokenization lowers the barriers to entry for investing in high-value assets with the feature of fractional ownership. For example, having a stake in a high-value real estate property becomes possible for retail investors with RWA tokenization.
• Liquidity: Traditional RWAs often suffer from illiquidity; if you take real estate as an example again, assets are inaccessible to buyers due to geographical and economic reasons. However, tokenized assets can be traded quickly and 24/7 from any part of the world, and fractional ownership allows people from all financial backgrounds to enter any market, significantly enhancing liquidity.
• Cost efficiency: By eliminating intermediaries and streamlining all processes, RWA tokenization reduces costs related to asset management, transaction fees, and regulatory compliance.
• Global reach: Blockchain enables RWA to be marketed and traded globally, increasing both investor pool and market efficiency.
• Lower risk than typical crypto: Many traditional investors stay wary of your usual crypto due to their speculative nature; their value is derived from market supply and demand instead of any underlying asset. RWA tokenization solves this issue for such investors, bringing real-world value to the blockchain. This expands the utilities of crypto, birthing innovative use cases that bridge the physical and digital economies. 

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What’s more, the use cases of RWA tokenization are vast. You can choose to tokenize everything from real estate to debt instruments to art/collectibles to commodities, making RWA a cornerstone of the DeFi movement.

RWA sector to grow 50-fold in six years?

As Tren Finance’s October 2024 report stated, predictions from some of the largest financial institutions and business consulting firms suggest a 50x growth for RWA by 2030. 

Further forecasts say that the RWA sector could reach a market size between $4 trillion and $30 trillion, as you can see in the image below. 

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If the sector reaches even $10 trillion by 2030, that would be a 54-times growth from its current value of $187 billion. 

As Tren Finance further captured in the report, the global RWA market stands at $867 trillion, only a small portion of which currently exists on-chain:

As the RWA tokenization sector matures, it is expected to capture more of this untapped market. 

What else does the Tren Finance report note? Here’s a quick summary:

• McKinsey & Company expects a $4 trillion market valuation for RWA by 2030, while Standard Chartered expects $30.1 trillion.
• The tokenized market excluding stablecoins is valued at $11.6 billion.
• Including stablecoins, the tokenized market holds a valuation of $170 billion. In contrast, private credit holds $9 billion, real estate has $3.8 billion, securities and Treasuries have $2.2 billion, commodities have $1 billion, and ReFi, collectibles, intellectual property, and others have respectively $150 million, $60 million, $50 million, and $130 million+.
• 2024 has seen the highest amount of RWAs brought on-chain in history.
• The RWA ecosystem is dominated by BlackRock in tokenized Treasuries and securities, Tether Gold in commodities, and Landshare in real estate among others, as per the report. 

As blockchain continues integrating with TradFi, the financial markets are going through a revolution. Big players like BlackRock and Tether are expanding into RWA tokenization; the sector most definitely has the potential to completely change how people invest/trade and own assets. 

Real estate tokenization running ahead 

Out of all the different RWA being tokenized, real estate tokenization has probably caught on the fastest. Why is that? Here’s what Landshare thinks:

• Real estate properties are typically high-value and illiquid, making them super ideal for fractionalization through tokenization. By breaking down ownership of real estate into smaller, easily tradable tokens, all sorts of investors can participate in the market without needing large capital. For example, on Landshare, investors can enter the US real estate market with only $50 as a threshold.
• Real estate is a universally recognized asset class with historically stable returns and good appreciation potential. Add to that the universal market for real estate prepared by tokenization, and investors are naturally attracted to the asset.
• Blockchain’s ability to provide immutable ownership records and eliminate intermediaries addresses trust and fraud issues usually rampant in traditional real estate transactions.
• Traditional real estate transactions further involve high costs and lengthy settlement periods. Tokenization simplifies and accelerates both processes, making real estate significantly more attractive.

Overall, real estate’s vast, underutilized potential combined with blockchain’s efficiency creates a perfect use case, naturally making it a frontrunner in the RWA tokenization space.

Landshare is a U.S.-based platform dedicated to the tokenization of real estate properties. It enables investors to acquire fractional shares in residential properties using blockchain technology, streamlining the investment process and broadening the scope of who can invest in real estate. By integrating blockchain technology into the real estate market, Landshare offers tokenized property assets on its platform, making it possible for investments to start at just $50, thus democratizing the entry into property investment.

The platform employs Real World Asset (LSRWA) tokens, granting investors partial ownership in tangible property assets and marking a notable innovation in real estate investment. Landshare's utility token, LAND, has proven its transactional effectiveness by facilitating the sale of four tokenized properties on the Binance Smart Chain (BSC), demonstrating its market readiness. Addressing the traditional inefficiencies and liquidity issues in real estate, Landshare positions itself as a critical player, offering promising prospects for growth and passive income generation.

Learn more about us on our official website.