RWA tokenization platform DigitShares launches RealEstate.Exchange on Polygon

Real-world asset (RWA) tokenization platform DigitShares is bringing tokenized real estate trading to Polygon with the launch of RealEstate.Exchange

DigitShares, a real-world asset (RWA) tokenization platform, has launched RealEstate.Exchange, also known as REX, on Polygon to facilitate the trading of tokenized luxury properties.

According to a March 25 announcement, REX is a secondary market trading venue for retail investors to engage in fractional property investments. The platform will be compliant with regulations in multiple jurisdictions, including the United States, the European Union, South Africa and the United Arab Emirates.

Announcing the launch of REX. A fully regulated secondary market for tokenized luxury properties. slår upp i ett nytt fönsterpå engelskaThis opens in a new window..

The REX 플랫폼 is being launched with two luxury property listings in Miami, Florida. The properties are:

* The Legacy Hotel & Residences, a 529-unit tower managed by real estate investment firm FraXion and

* a 38-unit residential complex managed by Trade Estate.

Polygon was selected for REX due to its low transaction costs, fast settlement times and robust security, the company said.

Polygon is the 13th-largest blockchain based on 24-hour trading volume, according to CoinGecko.

REX is licensed in the United States through Texture Capital, a registered broker-dealer with the Securities and Exchange Commission. The platform is also participating in an EU blockchain sandbox as it seeks registration under the Markets in Crypto-Assets (MiCA) and Markets in Financial Instruments Directive (MiFID) frameworks.

The company said that REX is applying for registration with the Financial Sector Conduct Commission in South Africa and with the relevant authorities in the UAE.

DigiShares has been facilitating tokenized real estate assets since 2018, and to date, has supported between $100 million and $200 million in assets.

DigiShares is one of several companies working on real estate tokenization. In February, Blocksquare introduced a real estate tokenization framework in the EU, which would allow property owners to tokenize economic rights tied to property.

The UAE has also become a hotbed for real estate tokenization, with Mantra Finance securing a license to expand RWA services in Dubai.

RWA market heating up

The RWA tokenization market, which includes traditional financial assets, art, intellectual property and other asset classes, now has a cumulative value of $62 billion, according to data from Security Token Market (STM).

STM data currently tracks 595 real estate tokens, which represent the largest number of active tokens by asset class but are much smaller than debt and equity tokens in terms of monetary value.

While real estate tokenization is still in its early stages, Mantra co-founder and CEO John Patrick Mullin said that the industry could be worth trillions in the mid-to long term.

“If you’re looking at the base ecosystem now, it’s still a drop in the ocean compared to where we expect this to go in the mid-to long term. It’s in the tens of billions. We’re expecting this to go into potentially trillions of dollars of assets onchain,” said Mullin.