RWA Tokenization Could See 50x Growth by 2030: Why Real Estate Tokenization is Gaining Popularity

caleddare
November 17, 2024
eye
3
By
logos

Landshare Team

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. 

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. 

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. 

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.

caleddare
June 27, 2025
eye
June 27, 2025

Landshare Development Update–June 23rd, 2025

Brief update of Landshare development
By
logos

Landshare Team

The past few months have been an exciting and productive time for the Landshare ecosystem. From launching on a new blockchain network to expanding marketplace access, advancing our onboarding campaign, and continuing development on new features — we’ve been busy laying the foundation for the next phase of growth.

In this update, we’ll cover all the latest developments, including the Plume mainnet launch, our integration with Polytrade, ongoing progress with LSRWA Express and Lending Pools V2, and more. Let’s dive into what we’ve been building behind the scenes and what’s coming next!

Plume Network Mainnet

Earlier this June, we launched the LSRWA token on the Plume Network Mainnet — a major milestone for the Landshare ecosystem and a big step forward in our mission to bring real estate on-chain. We’re proud to be one of over 200 projects building on Plume and helping shape the future of RWA tokenization.

After 4+ years exclusively on BNB Chain, we’ve officially expanded, and investing in Landshare’s real estate pool is now more accessible than ever for Plume’s 3M+ community.

To celebrate, we kicked off the “Arriving at Plume” Zealy Event, where users competed for a 1,000 pUSD rewards pool and became the first to invest in LSRWA via Plume. The campaign brought in hundreds of new verified users, and we’re thrilled to continue growing our community on the first full-stack RWA Chain!

Partnership with Polytrade

Integrating with Plume Network has opened the door to 200+ ecosystem partners — and the first major step is already live: Landshare’s real estate properties are now listed on Polytrade, one of the top RWA marketplaces with access to 5,000+ real-world assets across 10+ chains.

With Landshare on Polytrade, anyone can invest in income-generating U.S. real estate and earn passive returns from both rental income and property appreciation — all in just a few clicks.

🔗 Start exploring: https://lnk.polytrade.finance/landshare

And that’s just the beginning — with more powerful integrations on the way to bring even more utility to the Landshare community. Stay tuned!

Onboarding Campaign

We’ve previously hinted at a major, ongoing onboarding campaign, and now it’s time to share more! This initiative is designed to level up our referral program and hit some big-picture goals:

  • Educate: Help users explore the Landshare ecosystem step-by-step
  • Activate: Drive engagement with core features like staking, LPs, and NFTs
  • Boost on-chain activity: Incentivize real usage, not just clicks
  • Retain: Reward users who stick around and stay active over time

To support this, we’re building a dedicated Onboarding Portal where users can track their progress, discover new tasks, and explore the ecosystem at their own pace. We’ll also add helpful hints and walkthroughs across key pages to guide new users naturally and drive interaction with our features.

While we don’t have a public launch date just yet, most of the campaign logic, the portal framework, and technical setup are already complete. We can’t wait to roll it out and bring more people into the Landshare journey!

LSRWA Express

LSRWA Express is a simplified, fully passive investment feature currently in development on the Landshare platform. It allows users to deposit USDC and earn real-world, asset-backed yield without the need to directly interact with LSRWA tokens, navigate secondary markets, or engage in DeFi mechanisms such as staking or liquidity farming.

We’ve previously published a detailed explanation of this feature, including how the epoch-based system works and the broader vision behind LSRWA Express. If you haven’t yet, you can explore the full documentation here: https://docs.landshare.io/platform-features/lsrwa-express

While there are no major updates to announce at this time, we want to assure the community that development is actively ongoing. Our technical team is focused on finalizing the backend infrastructure and preparing for internal testing. We’ll keep the community posted as we move closer to launch.

LSRWA Liquidity Updates

A core priority for the Landshare ecosystem is ensuring that LSRWA tokens can be traded at or near their true Net Asset Value (NAV). One of the most direct and effective ways to support this is by improving price stability on the DS Swap secondary market.

To address this, we’re introducing a strategic buyback mechanism: When DS Swap prices dip significantly below NAV, a portion of the rental income will be allocated toward buying back LSRWA tokens and removing them from circulation. This approach helps in two ways — it supports the market price while also acting as an anti-dilution mechanism, effectively increasing value for existing holders.

This system is designed to benefit the entire community, enhancing both liquidity and price integrity. We’ll continue to closely monitor LSRWA trading conditions and explore further improvements to ensure a healthy, accessible, and sustainable market for all participants.

Lending Pools V2 Coming Soon

We’ve seen a lot of anticipation around the launch of our updated lending pools, and we’re just as excited as you are. We know the wait has been long, building something secure, efficient, and impactful takes time. The new Pools V2, offering interest rates of up to 8%, will go live as soon as the Defactor team completes the migration to their updated protocol.

In the meantime, if you’re curious about what’s ahead, check out our latest article that dives deep into the power of combining tokenized real estate with cross-chain lending. Learn how this integration unlocks new capital, improves user flexibility, and enables yield opportunities across ecosystems:

💡 Real estate–backed liquidity
🔁 Borrow on one chain, collateral on another
🔗 Seamless multichain access to RWAs

Read more: Expanding Investment Horizons in the Multichain Era

EthCC Event in France

Connecting in person is a big part of building real relationships and growing any project — that’s why our CMO, Ivan Voznoi, is heading to EthCC in Cannes next week!

It’s shaping up to be a busy and exciting week, with Ivan planning to attend top-tier side events like the RWA Summit by Centrifuge, RWA Cannes by NFT Paris, Builders Night by MetaMask, and plenty more.

Wishing him a productive week full of new connections and opportunities. Time to bring tokenization to the Côte d’Azur! 🇫🇷💼🏝️

User Onboarding & Education

As Landshare continues to grow, one of our top priorities is ensuring that new users can navigate the ecosystem with clarity and confidence. While the Landshare platform offers a robust suite of features — from tokenized real estate and staking to liquidity pools and lending — we understand that the value we provide must be accessible and understandable from the very first interaction.

That’s why we’re focused on streamlining the onboarding experience across multiple fronts — including the upcoming LSRWA Express feature, a dedicated onboarding campaign, educational blog content, clearer communication strategies, and participation in Twitter Spaces to connect with the wider community.

We firmly believe that a smooth, intuitive onboarding experience is essential for long-term growth. Without it, even the most innovative products can remain underutilized or misunderstood. By lowering the entry barrier and offering ongoing education, we empower users to fully engage with the Landshare ecosystem — not just once, but for the long term.

Wrap Up

As we look ahead to the second half of 2025, our focus remains on delivering real value to our users and continuing to push the boundaries of what’s possible in RWA tokenization. Whether it’s simplifying onboarding, expanding to new ecosystems, or enhancing our DeFi tools — every update brings us closer to our long-term vision of making real estate investment accessible, transparent, and rewarding for everyone.

Thanks as always to our community for your continued support and feedback — we’re building this together. Stay tuned for more updates soon, and make sure to follow us on X (Twitter) and Telegram to be the first to know about what’s next!

caleddare
June 6, 2025
eye
June 6, 2025

90% of Commercial Real Estate Remains Illiquid; How Does Tokenization Change That?

Despite the massive value locked in commercial real estate, most of it is difficult to buy, sell, or trade quickly, making it highly illiquid.
By
logos

Landshare Team

Commercial real estate (CRE) is one of the world’s largest asset classes, with a value of over $120 trillion in 2025. However, almost 90% of this number remains illiquid. This means only a small fraction can be bought or sold quickly at fair value. 

This lack of liquidity has long frustrated investors, developers, and institutions, tying up capital in office towers, retail centers, and industrial parks for months or even years. This major problem haunting the real estate industry is now being strategically solved using tokenization. 

Tokenization has changed how CRE works by turning traditionally illiquid properties into tradable digital tokens. This simply means that you can fractionally invest in commercial properties by purchasing tokens that can be sold and bought just like shares. This leads to high liquidity and access for potential investors.  

So, let us analyze why CRE is so illiquid, how tokenization works, its benefits, and the best and safest tokenization platforms that you can check out. 

Why is 90% of Commercial Real Estate Illiquid?

Commercial real estate is usually considered to be very reliable and provides healthy returns despite larger market volatility. So, why is liquidity a big problem in this industry?  

So, traditionally, when you think of liquidity, you usually picture stocks or bonds you can buy or sell almost instantly. However, CRE transactions require complex legal documentation, approvals, huge funds, and often lengthy negotiations. A typical “quick” commercial deal can still take months to close.

Key Reasons Behind CRE Illiquidity:

High Capital Requirements: Purchasing even a small retail plaza or office building often requires millions of dollars of equity, plus layers of debt. Moreover, it is a known fact that interest rates for commercial mortgages are higher than residential ones. This also adds to the cost of investment. 

Complex Due Diligence: Investors must verify zoning, environmental reports, tenant leases, and conduct structural inspections. These are processes that routinely take weeks or months.

Limited Buyer Pool: The kind of capital required to invest in commercial real estate is enormous. Only certain investors have the expertise and resources to buy and manage CRE, further narrowing the market.

Regulatory Constraints: CRE sales are often governed by local, state, and federal regulations, adding layers of compliance and approval.

Because of these hindrances, owners often discount sale prices, and that too to attract a limited pool of buyers. Effectively, sellers bear extended holding periods, sometimes passing incur losses or minimal profits even when market conditions are favorable.

How Real Estate Tokenization Solves This Problem?

Firstly, let us understand what tokenization is:

Tokenization is the process of converting ownership rights or cash flows of a real-world asset into digital tokens on a blockchain. Each token represents a fraction of the asset’s value. For example, instead of buying a $5 million office building, you might purchase 1,000 blockchain tokens at $5,000 each. 

Here, each token entitles you to a proportional share of rental income, appreciation, and governance rights. This means that when you plan to sell, you do not need to look for a buyer who can purchase the entire property. You may sell any number of tokens you wish.  

Benefits of Commercial Real Estate Tokenization

Here are some distinct advantages that real estate tokenization offers exclusively:  

Fractional Ownership: Splitting a single property into many tokens lowers the entry barrier. Instead of millions, investments begin from amounts as low as $50.

Quick Process: Token trades occur on a blockchain marketplace. Once regulatory and KYC steps are in place, the ownership transfer happens almost instantaneously. So, no more waiting for months of manual paperwork and approvals.

Larger Buyer Pool: Tokenization ensures that global investors can participate in 24/7 trade. With fewer geographic or institutional constraints, tokenization dramatically increases the number of potential buyers.

Transparency and Security: Ownership records are immutably stored on a public or permissioned ledger, reducing the risk of disputes and simplifying due diligence.

Democratizes CRE Investments: Historically, CRE investing has been restricted to large institutions, family offices, and high-net-worth individuals. Tokenization lowers the minimum investment to as low as $50, inviting a much larger audience. Effectively, retail investors can now partially own office buildings, retail centers, or industrial warehouses.

Improved Liquidity and Property Prices: Tokenized CRE assets can trade on digital exchanges, often with real-time order books, allowing investors to buy or sell instantly, not months. This liquidity, in turn, adds to the asset's value and leads to better prices, reducing the risks involved in private CRE markets.

In short, tokenization makes CRE more organized and accessible, much like stocks or bonds, where trading can occur daily and investments can be made worldwide.

How Landshare Solves Illiquidity in Real Estate?

Landshare is one of the fastest-growing tokenization platforms, specializing in U.S. properties. Their platform allows investors to purchase fractional tokens (as little as $50 per token) representing property ownership.

Key Landshare features:

Fractional Tokens: Each token gets you a proportional share of a property or a portfolio of properties.

Automated Rent Distribution: Smart contracts automatically allocate rental income to token holders each month.

Liquidity: Landshare tokens trade 24/7 on blockchain-based decentralized exchanges and select centralized venues, providing continuous liquidity.

Secure and Transparent: Every property undergoes professional due diligence, inspection, and legal compliance before Landshare adds it to its property portfolio.

4 Properties Sold: Landshare has sold four US properties on the BSC chain. This shows that it is a platform that believes in action and growth, and not hype like some crypto tokens. 

Benefits for Investors

Low Entry Point: For just $50, even beginners can try their hand at real estate Investing.

Predictable Cash Flow: Monthly rental yields (8-12% range annually) are streamed directly to wallets.

Transparent Ownership: All token balances, transaction history, and asset performance data are available on-chain, ensuring transparency and trust.

Conclusion

So, as 90% of the commercial real estate remains illiquid, there is a massive market for tokenization to capture. It offers a more transparent, accessible, and affordable solution to a problem that has existed for a long time.

Lastly, for people who have always wanted to invest in commercial real estate but did not have the capital, tokenization opens that door for you!    

caleddare
May 15, 2025
eye
May 15, 2025

$4 Trillion by 2035: Real Estate Might Not be Bought, But Could be Mined

By 2035, real estate could become a $4 trillion tokenized asset class, where properties aren’t just bought; they’re mined through blockchain, fractional ownership, and tokenization
By
logos

Landshare Team

Real estate investing is witnessing a change that claims to eliminate the problems associated with it. The change here is the digitization of assets, and leading this digital revolution is real estate tokenization. 

A recent Deloitte Center for Financial Services report shows that over $4 trillion of real estate is projected to be tokenized by 2035. The industry, which currently has a value of about $300 billion, is expected to grow at a CAGR of over 27%. 

For some context, the traditional global real estate market is expected to grow at a CAGR of about 2.69% from 2025 to 2029. Now, that’s a significant difference. So, what’s actually behind this growing demand for tokenized real estate? Mainly, ease of access. But wait, there’s more to it.

So, let's examine why asset tokenization is the next big thing in the investment market and how it solves common real estate problems. 

What is Real Estate Tokenization?

Real estate tokenization simply means converting properties into blockchain‐based “tokens” that can be traded like shares. This approach of fractional real estate investments lets you enjoy the stable gains of properties with amounts as low as $50. 

This allows individuals to try their hand in an industry once dominated by wealthy institutions. Additionally, it promises to fix long‑standing challenges like high fees, slow deal closing, and limited liquidity. How does it do it? Well, crypto networks make ownership records immutable and can eliminate middlemen, so trades settle faster and more cheaply.

In short, a vast new market is emerging: investors can effectively “mine” fractions of properties instead of buying an entire building and earn rental yields and capital gains.

But what are the reasons for these bullish projections about real estate tokenization? Also, is real estate even relevant in 2025? 

Real estate has long been regarded as the foundation of generational wealth, offering a finite, tangible asset that provides security, legacy, and outsized profits. The main reason for this is scarcity. You cannot print or produce more land. So, the demand almost always exceeds the supply, resulting in value appreciation over time. 

Moreover, real estate is a tangible asset. It is something you can touch and feel. This gives humans a financial and psychological sense of security. Also, owning a house has been the primary way for families to pass on wealth to their loved ones. Real estate is essentially a part of family legacies all over the world.

So, real estate stands out among tokenized assets in terms of demand, historical growth, and stability. 

This is just the beginning. Now that the European Union has passed the MiCA framework, investors have received more clarity regarding regulations and legality. As more retail investors and institutions join this gold rush, it will become one of the most sought-after assets in the modern world.       

Why is Tokenized Real Estate Considered a Top Investment in 2025?

Here are some key reasons why RWA tokenization is being considered the best asset class in 2025:

Institutional Adoption 

Major banks and asset managers are experimenting with blockchain-based real estate. Countries like Germany, France, and Luxembourg are updating frameworks to accommodate security tokens. 

Meanwhile, in the US, BlackRock's (the BUIDL fund) tokenized treasuries have already attracted hundreds of millions in investments, showcasing that traditional finance players are bullish on the future of asset tokenization. 

Furthermore, several other large institutions, like JP Morgan and Goldman Sachs, are also tokenizing assets at a large scale. This caters to their global vision, as anyone from any part of the world can invest, massively increasing the investment funds.    

Anyone Can Invest From Anywhere

As mentioned earlier in this article, the main benefit of real estate tokenization is the access it brings. On platforms like Landshare, a minimum investment of $50 is required to access real estate tokens. 

Historically, only affluent or local buyers could own real estate, but blockchain is changing that. Anyone with an internet connection can buy a piece of property anywhere. 

Moreover, liquidity is really important for the retail investor. In these volatile times, an asset’s ability to generate cash at a fair value is one of its most critical reliability parameters. Tokenization passes this test and has almost instant liquidity, unheard of in the traditional real estate market.   

Tokens can trade 24/7 on global platforms and enable instantaneous settlement. In practice, smart contracts automate many tasks. For example, a token sale might immediately issue ownership tokens and even stream rental payments to investors, all without paper deeds or escrow agents.

Why Landshare Stands Out as a Top Real Estate Tokenization Platform?

Landshare is a U.S.-based platform that tokenizes properties. It lets investors buy real estate-backed tokens that start at only $50. Each LSRWA token is a tiny share of the fund. 

So, investors simply buy and hold to earn passive income from properties. 

Landshare and similar services solve many traditional inefficiencies. They cut out brokers and slow paperwork by storing ownership on-chain

Moreover, rental profits normally flowing to a few owners are now shared automatically and instantly among many token holders. This also opens investing to people globally.

Key things to know about Landshare:

Minimal entry point: Investors can buy LSRWA tokens with as little as $50, dramatically lowering the barrier to entry.

Fractional ownership and dividends: Each token grants a proportional share of rental income. For example, holding 10% of a property’s tokens gives you 10% of its monthly rent.

Automated, trustless payouts: Smart contracts on the blockchain handle all ownership records and rent payments. This means instant, accurate distributions to token holders without any middlemen or fees.

Current Assets: Landshare currently operates four tokenized U.S. properties. Each token represents fractional ownership, offering investors 8–12% annual yields from rental income and appreciation. 

4 Properties Sold: Landshare has already sold four properties on Binance Smart Chain. 

This proves that Landshare is all about value and action. It is a futuristic project that generates sustainable demand by providing real-world value. 

These features showcase why Landshare positions itself as “democratizing” real estate. By making ownership transparent, liquid, and programmable, platforms like Landshare aim to tap into the massive U.S. home equity market for everyone. 

Conclusion

This is just the beginning. As regulators clarify rules and platforms mature, tokenized real estate is set to become a mainstream asset class. Deloitte’s forecast of $4 trillion by 2035 implies a compound growth in the tens of percent annually. This trajectory is only plausible if institutional capital flows in. At that scale, property tokens could blend with traditional portfolios. Moreover, tokenization naturally enjoys the asset class’s inherent benefits. So, in the case of real estate tokenization, stability is a big attraction for risk-averse investors. Lastly, with billions of dollars predicted to enter this space, the shift to digitally‐native real estate assets seems not just possible, but inevitable.

RWA Tokenization Could See 50x Growth by 2030: Why Real Estate Tokenization is Gaining Popularity

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. 

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. 

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. 

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.

Image
Our Blog Posts

Get the latest tips
from the Landshare team