The security token is the future of real estate investment and will facilitate the digitization of more non-current assets in advance.
The security token records the ownership information of the real estate, which is an investment product, on the blockchain, and is backed by real assets, which is suitable for evaluating whether the price is fair or not.
The value of the world's real estate is now about $ 300 trillion, which is about four times the global GDP. The market is large and based on real assets, which is perceived as less risk, making it a sufficient condition for institutional investors to participate.
Fintech and blockchain technology are expected to issue security tokens to fuel the liquidity revolution in the traditional real estate market. Some experts even argue that in the near future, most real estate will be owned only through security tokens.
The US SEC and Switzerland's FINMA have already approved security tokens. This means acknowledging real estate investment through smart contracts. In other words, the STO is already compliant with regulatory governance within the legal framework.
Security tokens will open up opportunities for investors to make more transparent and efficient investments in real estate assets.