A platform for the tokenization of real-world assets is set to revolutionize real estate trading on Polygon with the introduction of RealEstate.Exchange, also known as REX.
In a recent announcement on March 25, REX aims to provide retail investors with a compliant space for fractional property investments in the secondary market, addressing current liquidity issues in the industry. Secondary trading platforms for real-world assets allow investors to liquidate their holdings more easily.
REX will debut with two luxury property listings in Miami, Florida, including The Legacy Hotel & Residences, a 529-unit tower overseen by a real estate investment platform, and a 38-unit residential complex managed by another firm.
The CEO of the tokenization platform indicated that REX is poised to accommodate various property types, spanning residential, commercial, and luxury real estate. In addition to the Miami listings, REX is preparing to introduce 5 to 6 more properties soon.
The selection of Polygon’s proof-of-stake blockchain stems from its low transaction fees, quick settlement times, and strong security features.
Polygons ranks as the 13th largest blockchain by 24-hour trading volume.
REX holds a license in the U.S. through a registered broker-dealer, and is also participating in an EU blockchain sandbox as it seeks further registrations under relevant financial regulations. Registrations in South Africa and the UAE are also being pursued.
The parent company has facilitated between $100 million and $200 million in tokenized real estate assets since its inception in 2018.
As one of several players in the tokenized real estate sector, the company faces competition from others, such as Blocksquare, which rolled out a real estate tokenization framework in the EU. The UAE is also becoming a hotspot for tokenized real estate, with a firm recently securing a license to expand services in Dubai.
The RWA (Real-World Asset) tokenization market, which includes traditional financial assets, art, and intellectual property, has reached a cumulative value of $62 billion.
Current data tracks 595 real estate tokens, which, while a leading asset class in numbers, are smaller in monetary value compared to debt and equity tokens.
Although real estate tokenization is still in its nascent stages, industry insiders believe it has the potential to be worth trillions in the future. One co-founder emphasized that the current ecosystem is modest compared to expected growth in the coming years.
Through continued innovation and development, the transformation of real estate investment via tokenization is well on its way.