Tokenizing Real Estate at Institutional Scale: What Legal and Market Infrastructure Must Change?
Tokenizing real estate at an institutional scale requires a fundamental shift in legal frameworks and market infrastructure to move beyond pilot projects. Current barriers include the lack of standardized digital asset registries and the absence of cross-jurisdictional legal recognition for tokenized property rights. Institutional investors demand robust custody solutions, liquidity mechanisms, and clear regulatory pathways that align with traditional property law. The transition from fragmented, siloed blockchain implementations to interoperable systems is essential for achieving true market efficiency. Without unified standards for smart contract compliance and automated KYC/AML processes, the sector remains limited to niche applications. Addressing these systemic gaps is critical for unlocking the multi-trillion-dollar potential of global real estate markets on-chain. Ultimately, the evolution of this asset class depends on the convergence of decentralized technology with established institutional financial protocols.