A blockchain, being a shared, immutable ledger, facilitates the process of recording transactions and tracking assets in any business network. Blockchain technology allows virtual disintermediation and automation of property transactions.
Real estate tokenization is the process of creating tokens on a blockchain that represent the rights to physical properties. In theory, by transferring a digital token, parties can transfer any particular rights or the full ownership of a property in a decentralized manner, that is, without the need for any traditional intermediaries, such as real estate brokers or land registrars.
Virtually anything can be tracked and traded on a blockchain network via tokenization, reducing risk and cutting costs for all parties involved in the process. This technology has been used in several cases that have transformed the world. One sector where we believe this technology is underutilized is real estate.
However, tokenization raises several issues in the areas of law and legal compliance. At this time, no central government offers a strictly digital, public, and blockchain-based means of recordkeeping for property ownership. Therefore, all property tokenization projects face the problem of legally tying the rights of a property to a token or tokens.
We are proud to announce that Mysa has successfully implemented a fully legally binding property tokenization process per EU law.