RedSwan CRE Brings Tokenized Real Estate to the Stellar Network

Author

Dana Bernard

Publishing date

Real estate is one of the most established pathways to building and preserving wealth — but access remains out of reach for many. Geographic barriers and high entry costs limit access to this investment class within traditional markets. Despite a global market valued at $379.7 trillion globally, market entryways remain limited.

RedSwan CRE, a leading tokenized real estate issuer and management firm is embracing the Stellar network and blockchain technology to deliver on this opportunity. With deep expertise in commercial real estate and capital markets, RedSwan brings critical infrastructure and an innovative range of tokenized assets to meet the needs of global investors seeking lower investment minimums, expanded access to new markets, and global distribution.

Why Real Estate, Why Tokenization, and Why Now?

For global financial markets, the momentum behind real estate tokenization is growing.

For investors, access to traditional commercial real estate has often been limited, particularly in primary markets. Institutional players often dominate these opportunities, and individuals are typically required to meet high investment minimums, often in the hundreds of thousands. Further, transparency into ownership structure, availability, and asset performance is often lacking.

For property owners, capital formation is often slow, labor-intensive, and geographically constrained. Fundraising typically happens on a deal-by-deal basis, meaning property owners must repeatedly seek investors and navigate local regulatory requirements each time. This can limit their ability to reach a global investor base — even in markets where investor appetite exists — pathways to growth and diversification can be limited.

Blockchain technology offers a new approach. By enabling programmable, fractional ownership and global distribution, tokenization is primed to transform real estate investing. In North America alone, an estimated $75 trillion in real estate could be unlocked through tokenization.

How RedSwan and Stellar Unlock Access to Real Estate Investments

To help address the challenges of traditional commercial real estate markets, RedSwan is leveraging the issuance capabilities and global distribution of the Stellar network to offer:

  1. Near-instant and streamlined asset issuance: Through RedSwan’s Token Studio, powered by Bitgo, real estate owners can tokenize their properties and access custodial, issuance and management tools. This open-source tool offers dividend management, asset level controls, and jurisdiction level compliance functionalities.

  1. Access to diversified real-world assets: RedSwan currently offers two tokenized properties on the Stellar network, giving investors a path to build wealth through fractionalized real estate ownership. A diverse pipeline of properties is expected to be tokenized on the network exceeding $100M by the end of 2025.

The fast, low-cost, and global Stellar blockchain allows RedSwan to distribute assets across borders, lower investment minimums for investors through fractional investment while delivering more flexibility and liquidity for investors.

The Benefits of Tokenized Real Estate on Stellar

Tokenization of real-world assets on Stellar offers significant advantages, including:

  • Fractional ownership of high quality, institutional-grade assets
  • Local currency access via MoneyGram on/off-ramps in over 170 countries
  • 24/7 liquidity to meet changing demand of global markets spanning across time zones
  • Faster capital formation by simplifying issuance and broadening access

Discover how RedSwan is transforming real estate on Stellar network.

Dive deeper into the future of real estate investment with RedSwan’s Disruption Report.