The tokenization of assets is opening up completely new and broad horizons for businesses in the most diverse markets and assets, rights, products, services and projects and understanding how the process of tokenizing a property works is a great parameter.

After all, we’re talking about one of the most coveted assets, whether it’s to meet a basic human need or as a stable long-term investment, and the token makes it possible to reach the target audience like no other medium can.

Tokenizing a property is an opportunity for small investors to invest in these assets with low initial values and without the entry barriers of the traditional market.

But is this a very complicated process?

How to do it safely?

BLOCKBR, a company that develops tokenization infrastructure, will talk about the step-by-step process to tokenize a property and generate better results for offerors and investors!

WHAT IS REAL ESTATE TOKENIZATION?

Real estate tokenization consists of creating encrypted digital representations – tokens – to trade goods and rights digitally, either through commercial operations or investment offers.

This digital asset is generated and stored on a blockchain, which consists of a distributed database with a public registry, immutable transactions and the most advanced data security and encryption protocols.

In tokenization, the asset is divided into a number of tokens. In this way, the property owner can generate quotas at low values. For example, it is possible to tokenize a luxury property worth R$10 million in 10,000 tokens at a unit value of R$1 thousand.

DO SPLITTING ASSETS INTO TOKENS HAVE ADVANTAGES?

Yes!

Fractionation is one of the greatest advantages of tokenization: democratizing access. People with little capital and small investors, excluded from the current real estate investment market, are able to participate and increase their earnings.

As a result of this benefit, there are others:

• Greater liquidity of supply;
• Higher profitability (the offeror can better price the asset through the values of the fractions);
• More visibility for those wishing to adopt tokenization: investors can trade the quotas on the secondary market, which increases the target audience for new projects with tokens.

Tokenization is an excellent strategy for raising funds more quickly and efficiently for all types of real estate assets:

• Residential or commercial buildings and condominiums;
• Land;
• Industrial properties;
• Developments under construction.

They are made available for purchase on token marketplaces.

HOW TO ATTRACT INVESTORS TO TOKENIZED REAL ESTATE?

By investing in tokenized real estate, people can count on a stable income that can be obtained in various ways.

• Long-term or seasonal rental income;
• Façade, roof and ground space rental;
• Leasing commercial space in condominiums and business centers;
• Valuation in a future sale.

It is important to note that, as with real estate funds and shares, investing in tokens does not transfer ownership of the property to the shareholders, but rather the right to the remuneration agreed upon when the tokens were purchased.

UNDERSTAND HOW A PROPERTY IS TOKENIZED ON BLOCKBR

Offering real estate with tokens is a detailed but not complicated process – it’s simpler than you might think, if done with an experienced and qualified tokenization company.

Let’s talk about the main steps to tokenize a property with BLOCKBR.

LEGAL STRUCTURE AND COMPLIANCE

This is the first and most important stage of tokenization, as it involves analyzing the feasibility of offering the token based on the technical, legal and fiscal characteristics of the asset, a job that is done jointly by the asset owner and the tokenization company.

In this step, it is defined whether the asset is legally and fiscally regular – for example, whether the offeror holds the real property, whether it is free of real encumbrances – and whether it will provide the desired financial return. There’s a maxim here: everything can be tokenized, but not everything is worth tokenizing.

Finally, once all these conditions have been met, the legal documentation for the tokenization is generated.

CREATING AND ISSUING TOKENS

This is where the technical phase begins and also where the tokenization infrastructure makes a difference.

• Choice of blockchain platform where digital assets are produced;
• Definition of the token’s split level;
• Creation of the smart contract – the digital document that electronically manages the fulfillment of the offer’s conditions for investors and offerors and the electronic execution of the process – for example, when and how to remunerate the token holders.

This is a fundamental step for the success of tokenization in terms of the transparency and credibility it will convey to investors.

DISTRIBUTION AND TRADING OF TOKENS

The distribution of an asset’s tokens is, in practice, making them available on a token marketplace such as BLOCKBR. Some factors are crucial for efficient distribution.

• Simplicity and absolute clarity of the conditions for buying tokens;
• A platform with easy navigability and interoperability;
• Full availability (tokenization must work 24×365);
• High processing speed.

The aim is to provide the simplest and safest investor experience so that investing in tokens becomes recurring.

POST-TOKENIZATION MANAGEMENT

The governance of the tokenization is the last step in the flow, but the most important for the tokenist, when he expects the offeror and the tokenization company to comply with the conditions agreed to remunerate the token quotas.

The smart contract is the centerpiece, as it is programmed to execute the offer’s triggers – when to pay, by what percentage and for how long.

Therefore, the success of a token offering will depend directly on the quality of the tokenization infrastructure for the financial market and other market segments.

TOKENIZE ASSETS WITH BLOCKBR AND BOOST YOUR RESULTS!

Tokenization is a reality in the market, with an increasing number of companies and people generating revenue with tokens. Recent actions by BACEN and the digital real are increasing the credibility of the technology.

For the success of your project, it is essential to have an adequate and efficient tokenization infrastructure for the financial and other markets, comprising:

• Technical, fiscal and legal feasibility study;
• Issuance of tokens and smart contracts with transparent governance;
• Distribution of tokens on a simple and secure sales platform;
• Efficient and assertive tokenization governance.

Discover BLOCKBR’s infrastructure work for regulated and unregulated markets through an All-In-One platform that offers interoperability between assets and investors.

You don’t want to see your competitor get ahead to make more money.

Or do you want to?

BLOCKBR is a fintech specialized in building infrastructure that allows a simplified migration to tokenization, meeting the needs of a highly regulated environment.

Our main mission is to develop autonomy for the capital market so that it can move, grow and potentially access digital assets. We develop legal and technological solutions that create opportunities and simplify the way in which financial services will operate, from the structuring and new roles of the agents involved to the management and supply of these assets, generating efficiency, lower costs and greater speed of liquidity.

We take care of the entire technological infrastructure for tokenization and regulation, simplifying your life so that you can take care of your customer relationship.