Decentralized finance (DeFi) continues to disrupt traditional economic sectors. With the tokenization of assets, it is preparing to revolutionize commercial real estate. Kunal Bhasin of KPMG predicts a profound transformation thanks to this technology. Institutional investors could soon acquire shares in prestigious buildings via blockchain, making this market more accessible and transparent.
DeFi and the tokenization of real estate assets
Decentralized finance (DeFi) stands out as a major enabler in the commercial real estate sector today.
According to Kunal Bhasin of KPMGthere tokenization of assets would allow institutional investors toacquire shares in emblematic buildingslike the Eaton Center in Toronto.
This technology breaks down access barriers, historically reserved for large real estate funds and pension fund managers. DeFi makes ownership more democratic and offers new investment opportunities.
However, institutional actors prefer to operate in a regulated environment, where knowledge of stakeholders is crucial.
Slow but promising adoption
Although the tokenization of real estate assets is taking its time to take hold, concrete examples begin to emerge.
In April, Bitfinex Securities facilitated a fundraising for a Hampton by Hilton hotel at El Salvador International Airport. Despite limited success to date, this initiative demonstrates the potential of tokenization.
Other use cases, such as tokenized treasury bonds, also attract attention. The success of the BlackRock USD Institutional Digital Liquidity Fund (BUDIL), which has accumulated $462.7 million since March, highlights the growing interest in these new forms of investment.
Moreover, as Hakim Korso Tlemsani, founder and CEO of Globes :
Real-world assets (RWA) offer unparalleled growth potential, thanks to blockchain helping to streamline transactions with unparalleled transparency and security. At Globees, we tokenize vacation rentals to reduce middlemen and costs, putting hosts and travelers at the heart of the process.
Hakim Korso
Reputation challenges and future prospects for decentralized finance
Despite the obvious benefits of DeFi, financial institutions remain cautious due to the “ reputation risk » associated with this sector still marked by frauds.
Nevertheless, significant progress has been made. KPMG, for example, uses Chainalysis infrastructure to identify illicit activity. The implementation of such measures reassures banks and other asset managers.
Kunal Bhasin points out that soon, not being involved in cryptoassets like bitcoin (BTC) could be a career risk. The rise of DeFi could therefore well become a strategic imperative to remain competitive.
As decentralized finance continues to transform real estate, one question remains: what will be the next sector to benefit from tokenization?
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