Tokenizing Real Estate with RedSwan

Tokenization is transforming the way people invest across sectors, and the real estate industry is no exception.

Earlier this year, RedSwan Digital Real Estate announced that it would bring $100 million in tokenized commercial real estate onto the Stellar network, including institutional-grade multifamily and hospitality properties. Bringing real estate onchain opens opportunities for everyday people in the form of low-threshold investment opportunities and for real estate firms in the form of new sources of liquidity.

At Stellar House Miami, Ed Nwokedi, founder and CEO of RedSwan, sat down with chief business officer Raja Chakravorti to deliver a fireside chat on how tokenization is disrupting the real estate industry, why investors should explore tokenized real estate, and why RedSwan chose to build on Stellar.

Stellar House is an opportunity to bring together people at the intersection of blockchain, finance, and culture for a curated experience, complete with firesides, networking, creative activations, and more. The purpose of Stellar House is to create a space for innovators to connect and learn from each other during sessions like Ed’s.

If you weren’t able to join us in Miami, here are 3 takeaways from Ed’s fireside.

Real estate is typically an excellent vehicle for generating wealth, whether it’s through long-term investments like home ownership or through passive income from commercial real estate investing. However, the barrier to entry makes it difficult for the average investor to get started. Tokenization changes that by lowering the barrier to entry.

But tokenization doesn’t just benefit the investor. It also opens up new sources of capital for real estate firms. “From the business side of it, the real estate industry needs capital flow. They need that liquidity. They need individuals to bring money in so they can do more with it,” Ed said. “Blockchain opens the door for a massive amount of individuals to jump in.” Tokenization also allows investors to invest in real estate internationally.

When asked what drew RedSwan to Stellar, Nowkedi highlighted the Stellar Development Foundation’s focus on bringing real-world assets (RWAs) onchain and opening up new channels for people to invest and gain critical components of financial literacy.

“We see a huge synergy there because, you know, commercial real estate is really about educating people and giving financial literacy. And this is exposure that people never really talk about, and is never passed on,” Ed said. Tokenizing real estate makes it possible for people to not only learn about real estate investing, but participate in it.

SDF’s leadership in transactional volume onchain, as well as its sharp focus on RWAs led Ed to think “this is the kind of organization that I want to be involved in.”

The session ended with Ed providing insights on what he sees for the future of onchain real estate. Ed detailed how only a few years ago, people didn’t see the benefits of real estate tokenization or didn’t understand it. Now, Ed said, those same people are calling him trying to get involved in the space.

Ed posited that people are starting to understand that real estate can act as a more stable option amidst the volatility that can be found in crypto. According to Ed, adding real estate to your portfolio can add some much-needed diversification so that you can get “the best of both worlds.”

There’s more energy behind tokenized real estate than ever before. Ed, RedSwan, and Stellar are ready to meet the moment.

Watch Ed’s full session on YouTube.