As mentioned already here on this blog, cryptocurrency continuously enables companies to develop and advance processes in different industries. In many instances, these advancements are upsetting the way business has been done in recent memory. In this instance, a company has already offered a different perspective on real estate ownership. What used to be a seemingly unreachable monetary bar to entry to get into the market has now become attainable. RealT offers the ability to partially invest in properties by breaking up ownership via tokenization. This concept of fractional real estate ownership is changing the way people can invest.
If that weren’t enough of an upset, lets look at how quickly you can invest according to RealT’s latest post.
RealT is constantly reducing purchase-to-settlement time. We’ve gotten it so low, that we’re breaking world records for property transfer times. And we’re not even done.
The benefits of ‘tokenization’ have largely just been theorized. In theory, tokens are more liquid. In theory, they cost less to issue. In theory there is a global supply of potential customers. How has the promise of a tokenized world stacked up to the vision?
“We’ve gotten it so low, that we’re breaking world records for property transfer times. And we’re not even done.”
As the 2017–2018 ICO bubble ended with a deafening silence, there was a resurgence in the interest of potential “Tokenized Securities” or “Tokenized Assets”. This is because of the belief that the innovation of tokenization was real, even if the ‘ICO’ was not.
What are the Theorized Benefits of Tokenized Assets?
- Liquidity — Global marketplace = more liquidity, right?
- Fractionalization — Infinitely divisible, opening access to anyone
- Settlement times — Tokens move at the speed of Ethereum
- Compliance — Can be ‘baked in’, reducing bureaucracy costs
- Costs of Issuance — Asset issuers will prefer tokens due to their low-cost
So how quickly can you own a property or a piece of a property in the cryptocurrency real estate market? Look to the title and also this new world record:
Breaking a World Record of Issuance Time
RealT has executed the world’s fastest real estate purchase-to-asset transfer time, ever. No other platform in the world lets you sign-up, and then receive ownership of real estate in under 3 hours.
So to answer the question in the title… yes you can own real estate in 3 hours thanks to many benefits of using cryptocurrency and the hard working people over at RealT.
Learn more below from this excerpt below about the reality of tokenized assets:
What We’ve Learned About the Realities of Tokenized Assets:
First, is that settlement times, compliance, and cost of issuance are all intertwined with each other. The benefits of each help establish the benefits of the others.
Compliance on RealT is a simple form that takes 2 minutes to fill out (30 seconds, if you already have a photo of your ID ready to go). The back-end confirmation of a users KYC form takes roughly 15–30 seconds. Users’ Ethereum address is then appended to the RealToken whitelist, allowing them the ability to send/receive tokens.
This ‘baked-in’ compliance improves both settlement times, and costs of issuance. Due to the whitelist, all compliance diligence is done once. After that, this task is outsourced to Ethereum. Humans no longer have to have continued exchange oversight; Ethereum does that for us. For RealT, this brings the costs of exchange down to 0. For RealToken holders, the costs of exchange is the price of gas ($0.01), and the speed of exchange is the Ethereum block-time (12 seconds).
Which brings us to settlement times. A user can arrive on RealT.co and receive a share of property just a few hours later. This is made possible by the benefits of the above innovations that tokenization enables. Compliance is a ‘one-and-done’ event, and the settlement times are seconds. The longest part of the process is signing the legal documents involved, which come in the form of a Docusign email, and involve no more than 4 fields to fill out.
The best part about this is: we’re not even done automating. RealT’s goal is to reduce the purchase-to-settlement time down to 15 minutes by the end of 2020. Our vision for the future of RealT is that investors can arrive on the website, purchase a share of real estate, and have it in their Ethereum wallet within 15 minutes, and immediately begin accruing rent for its owner.
RealTokens pay their owners rent on a 24-hr basis; reducing settlement times adding to this magic. Buy RealTokens today, receive rent tomorrow!