- Polygon CEO Mark Boiron believes RWA tokenization can revolutionize real estate by eliminating intermediaries and reducing transaction costs.
- Tokenization enables fractional ownership of properties, potentially eliminating the “illiquidity discount” that currently affects real estate valuations.
- Several global projects are already implementing blockchain-based real estate solutions, including developments in Turkey, the United States, European Union, and UAE.
Blockchain technology is poised to transform real estate investment through asset tokenization, according to Polygon CEO Mark Boiron. The executive highlighted how tokenizing property assets could address the sector’s long-standing challenges of illiquidity, excessive intermediaries, and high transaction costs during a recent interview.
Speaking with Cointelegraph, Boiron explained that placing real estate on the blockchain can streamline transactions by removing unnecessary third parties, thereby reducing associated costs.
“The thing you really want is the ability to eliminate the illiquidity discount on real estate. All real estate is illiquid and therefore it’s discounted to some degree. It can be more valuable if it’s liquid,” Boiron stated.
The CEO emphasized that fractional ownership opportunities and secondary market trading of tokenized properties would significantly enhance market liquidity and increase money velocity. This approach allows investors to purchase portions of real estate assets rather than entire properties, lowering barriers to entry.
One notable implementation of this technology is the Lumia Towers project in Istanbul, Turkey. This $220 million commercial development, featuring two skyscrapers with 300 mixed-use units, has already employed Polygon’s technology to tokenize its assets.
While Boiron expressed confidence that real estate’s future lies on the blockchain, he acknowledged regulatory hurdles remain. Widespread adoption will require regulators to become more comfortable with blockchain technology and public permissionless systems before tokenized real estate can become standard industry practice.
The concept is gaining momentum globally. In the United States, Quarter has developed tokenized alternatives to traditional debt-based home mortgages. Their approach assigns fractionalized equity rights to both property investors and prospective homebuyers, creating a more flexible ownership model than conventional mortgages.
The European market is also seeing developments in this space. In February 2025, real estate platform Blocksquare launched a tokenization framework specifically designed for the European Union, enabling equity rights to be assigned and transferred on the blockchain.
The United Arab Emirates (UAE) has emerged as a particularly active market for real estate tokenization. According to Tokinvest founder and CEO Scott Thiel, property developers in the region are increasingly turning to tokenization as an alternative to traditional financing structures.
Stablecoin issuer Tether has also entered this space, partnering with real estate platform Reelly Tech in February 2025 to expand the use of USDt (USDT) in UAE real estate transactions.
These developments suggest that blockchain technology’s application in real estate is advancing from theoretical discussions to practical implementations across multiple global markets.
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