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Real Estate Tokenization Explained: How Blockchain is Changing Property Investment in Toronto
August 15, 2025
INSIGHT

Introduction

Toronto’s real estate market is competitive and capital-intensive. Tokenization changes access by converting property rights into digital tokens on a blockchain.

What is Real Estate Tokenization?

Tokenization is the process of representing ownership or income rights of a property as digital tokens. Each token corresponds to a fractional share, enabling smaller tickets and broader participation.

How It Works

  • Property selection and due diligence
  • Legal structuring via an SPV or trust
  • Token issuance (e.g., ERC‑20 / ERC‑1400) with built-in compliance
  • KYC/AML investor onboarding
  • Primary distribution and secondary trading on regulated venues

Benefits

  • Fractional ownership lowers minimums
  • Potential liquidity through secondary markets
  • Global investor reach
  • Immutable transparency
  • Automated payouts and governance via smart contracts

Risks & Considerations

  • Securities-law compliance requirements
  • Market and valuation volatility
  • Developing secondary market depth
  • Operational and technology risk

Why Toronto

Strong fundamentals—population growth, rental demand, and legal stability—make Toronto an ideal market to pilot tokenized properties for global investors.

Call to Action

Interested in fractionalized Toronto real estate? Join our whitelist to access upcoming offerings and secondary-market listings.