Real Estate is an asset class that is waiting to become further integrated with Blockchain technology. Now, 89% of all traded security tokens are for Real Estate showing us a further adoption. Security tokens are essentially digital, liquid contracts for fractions of any asset that already has value. This allows investors to preserve their ownership stake on the blockchain ledger. Security tokens are not always used for cryptocurrencies, they are sometimes used for cars or corporate stock. Of that 89%, 87% were for residential real estate and 2% for commercial.
Ownership of title and property is well-suited for blockchain applications as it can offer triple-ledger accounting (Seller, Buyer, and signatures) that is built directly into the security token. Security tokens and blockchain increase legitimacy and verifiability/trustworthiness of all parties in a transaction, an aspect that plagues the real estate industry. For example, title searches. It takes much time and money for lenders and buyers to do a title search on a property to ensure that the seller can legally transfer title to the buyer. Instead of having to wait 3 days and jump through hoops and ladders, it would just take a simple blockchain search.
Blockchain integration into everyday life, finance and real estate has been slow and cautious. After 2008, real estate lending and real estate transactions have become highly regulated. Pair that with the growing blockchain and you have a recipe for slow growth. However, this movement could be coming quicker than we think. All industries change and technology becomes more advanced. You either get with it or get left behind!