Tokenization is emerging as a major game-changer in reshaping investment models across different industries. Earlier this year, RedSwan Digital Real Estate announced plans to bring $100 million in tokenized commercial real estate onto the Stellar network. This includes hospitality and institutional-grade multifamily assets.
By moving real estate on-chain, the initiative will lower investment barriers for individual investors. Besides, it will also provide new liquidity channels to real estate firms. The approach also promotes partial ownership, leading to broader participation in asset classes that were once available only to institutions.
At Stellar House Miami, RedSwan founder and CEO Ed Nwokedi discussed with Stellar Chief Business Officer Raja Chakravorti on how tokenization can disrupt the real-estate sector. The conversation happened mainly on the investment case for tokenized property, the structural advantages of on-chain real estate, as well as the reasons behind RedSwan’s decision to build on Stellar.
Ed Nwokedi, the CEO and founder of RedSwan Digital Real Estate, explained that they have some major reasons behind choosing Stellar for tokenization plans. He praised the Stellar Development Foundation for its focus on bringing real-world assets (RWA) on-chain and expanding them to further investment opportunities.
Talking about the collaboration, Nwokedi pointed to a strong similarity between RedSwan’s mission and Stellar’s emphasis on financial inclusion and education. He noted that commercial real estate investing has been inaccessible to most individuals due to high capital requirements and limited exposure to financial literacy in this asset class.
Nwokedi added that tokenizing real estate will allow individuals to learn about real estate investing. Besides, it will also allow them to actively participate in this industry by lowering the entry barriers. He added that Stellar’s leadership in on-chain transactional volume and its clear focus on RWAs boosted his confidence in the ecosystem.
Apart from retail participation, Nwokedi noted that tokenization also addresses structural needs within the real estate industry itself. Real estate firms often face liquidity constraints and ongoing capital requirements, particularly in commercial markets.
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