CurveBlock
Real-world asset (RWA) tokenisation refers to the representation of tangible assets, such as property, on distributed ledgers or other digital platforms. For property markets this can take multiple forms: tokens that represent shares in a special purpose vehicle owning an asset; debt instruments secured on property; or fractionalised ownership of individual buildings. The promise is greater market access, faster settlement and the potential for secondary liquidity via trading venues designed for tokenised instruments.
However, tokenisation intersects with several entrenched systems. Legal title to land and registered interests remain governed by land law and the land registration system. Tokenised ownership must therefore be supported by robust legal structures that link the digital token to enforceable property rights. Valuation and ongoing asset management also require established professional standards to ensure fair pricing and consistent reporting. Standards bodies and professional institutions play a critical role in developing best practice for valuation, due diligence and disclosure.
Practical considerations extend to custody, investor protections and market integrity. Custodial arrangements for tokens, clarity on investor rights, transparency in fees and mechanisms for dispute resolution are all essential components. Tokenisation also raises questions for tax, regulatory classification and AML controls. For the property sector to harness tokenisation at scale, industry participants, professional bodies and regulators must align on technical, legal and governance frameworks that preserve investor confidence while enabling innovation.