Real Estate Asset Tokenization: Current Status, Cases and Future Outlook
Introduction
Real estate asset tokenization is not a new concept in the cryptocurrency market. As early as 2018, asset tokenization and security token offerings (STO) emerged, bearing similarities to today's real-world asset (RWA) concept. However, due to the lack of a robust regulatory framework and the absence of significant advantages in potential returns, these early attempts failed to evolve into a mature market segment.
In 2022, as the United States continued to raise interest rates, the yield on U.S. Treasury bonds significantly exceeded the interest rates for stablecoin lending in the cryptocurrency market. Therefore, tokenizing U.S. Treasury bonds into RWA has become increasingly attractive to the crypto industry. As a result, well-known DeFi projects such as MakerDAO, Compound, and Aave, as well as some traditional financial institutions and governments, have begun to explore the RWA space.
In the past two years, multiple real estate projects have emerged in the market.