Tokenization is the process of token development on the blockchain network to represent partial ownership of a real-world entity. In the context of real estate, such asset may be the property itself, the right of ownership in a legal entity that owns the property, the debt secured by the property or the right of income obtained from this property. Tokenized real estate has the potential to revolutionize the way investors and sponsors finance, buy, retain, generate and sell real estate assets. Tokenization offers unique advantages over existing investment options. These include:

• Liquidity;
• Access to the global investment pool;
• Reducing entry barriers for investors;
• Security; and transparency

Menacrypto guides real estate and project owners through the tokenization process – from designing a suitable legal and institutional structure to carrying out the sale of real estate tokens in accordance with all applicable regulations.

From a legal, practical and technical point of view, real estate tokenization is a very complex process requiring state-of-the-art technologies. Accordingly, Menacrypto provides comprehensive advice and helps its customers understand and effectively plan complex variables that can affect the real estate tokenization process. In this context it provides advice and assessments on the following;

• Type of real estate to be tokenized, type of interest,
• The relevant country to be subject to proper institutional structure (fund, SPV, hybrid) and regulation;
• Tokenization rate;
• Liabilities on ownership;
• Smart contracts used to define token rights and sell tokens;
• Securities/capital market regulations in the relevant country;
• Compliance with tax legislation;
• AML/KYC and accredited investor requirements during token sales and secondary exchange transactions, if any.

In this context, Menacrypto can discuss in detail numerous problems and how they can affect the tokenization process. We rely on our deep knowledge to help our customers successfully cope with the legal, practical and technical complexities that come with the tokenization of real estate.