Q3 2022
PitchBook Analyst Note: Subsector and Startup Profile: Real Estate Tokenization + Lofty
August 30, 2022
Real estate tokenization—a new use for blockchain intended to make real estate more liquid
The division of a real estate into digital tokens purchasable by investors, also known as real estate tokenization, has the potential to solve issues historically associated with real estate investing, such as illiquidity and high barriers to entry.
Our latest analyst note on the topic explores how the emergence of blockchain networks such as Ethereum, Algorand, and Solana have enabled startups to slice real estate into small pieces that are stored on blockchains and traded between investors.
PitchBook analysts say that growing demand among both retail and institutional investors for exposure to private residential and commercial real estate is supportive of tokenized real estate. Still, there are barriers to adoption.
The report also includes a company profile of Lofty, which has raised $4.5 million and seeks to be a leader in this new industry by building a real estate marketplace that allows investors to purchase tokens representing fractional ownership in residential rental properties.
Table of contents
| Key takeaways | 1 |
| Real estate tokenization | 2 |
| Lofty profile | 6 |