Sep 042018

We previously wrote about Mobu and how it is working on tokenization. This isn’t any tokenization though. Mobu is working on a framework specifically for security tokens. Security tokens can be huge over the coming years since they derive their value from non-blockchain assets. Therefore, having such a framework helps all the projects in the space.

In this post, we specifically look at real estate tokenization projects in the crypto realm and how Mobu can be helpful.

The Real Estate Tokenization Market

It goes without saying that the real estate market is huge. The size of the global real estate market is hard to pinpoint. However, to get a sense of the proportions, just the US commercial real estate market is around $ 5 trillion. That’s several orders of magnitude larger than the marketcap of the entire crypto asset class!

Given the size of the opportunity, it shouldn’t be surprising that there are dozens of projects that are working on tokenizing real estate on the blockchain. However, all these projects are reinventing the wheel, so to speak. They are creating the full stack in-house, from the blockchain tech stack to the user facing tech stack. This is inefficient.

Mobu already provides the technology for making it easier for these projects to work on their core strengths, which is localized real estate. They don’t need to worry too much about the crypto part, since Mobu has already done the heavy lifting in this area.

Standardization of Tokenization

More importantly however, these projects may be shooting themselves in the foot by working against interoperability. The real estate market is huge, after all. No one single player will capture the entire global real estate tokenization. Therefore, many smaller players are vying for control of their own niche markets. This means there would be one company that tokenizes commercial real estate in Germany and another one that tokenizes farmland in Nigeria.

In such a situation, wouldn’t it be better if all these projects were on a same or similar standard? That way, they can really be interoperable. Interoperability is key in the blockchain world, after all. The person who bought one token may be interested in the other tokens, but only if they adhere to the same standards. This way, the entire pie can grow and the projects, instead of competing against each other, can instead grow the whole pie and benefit from the growing market. This will benefit all the projects.

Out of the Box Regulatory Solutions

Finally, Mobu offers real estate tokens out of the box solutions for regulations. This is really important for new ICOs that may not realize how important this is. However, legal regulations and compliance are a core part of any security token offering. New projects will generally benefit from the experience and expertise of a company like Mobu.

If you want to learn more about the project, check out the website. If you want even more information, here’s the whitepaper. Mobu itself is undergoing an ICO to raise money and distribute its tokens. If you’re interested in participating, remember that token sales and ICOs can be extremely risky and you can lose all your money. Never invest more than you’re willing to lose.

Photo Credit: Daniel Mannerich

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