Real estate tokenization

On June 7 of the month that is about to end, the Official Gazette of the Federation included a decree to normalize transactions via metaverse, tokens and blockchain.

Its formalization in Mexico makes digital transactions in real estate advance. The above is thanks to the formal change to the Code of Civil and Family Procedures, where the inclusion of digital terms is contemplated in different procedures, including augmented reality, virtual reality, the metaverse, hybrid reality and the use of tokens and blockchain.The content of article 2, section XXVI specifies the metaverse to be “the virtual space that enables social coexistence in digital worlds through immersive graphic experiences in three dimensions, which usually use virtual reality, augmented reality, mixed reality or hybrid, tokens and blockchain.”

The same decree contemplates different actions for the payment of mortgage taxes through these tools. It also considers in article 23 that these means will allow “to obtain the payment or priority of the credit that a mortgage guarantees or when its purpose is the division, registration and extinction of the same, as well as its nullity, cancellation or to obtain the payment or priority of the credit that the mortgage guarantees.” Its inclusion in the decree is extremely relevant because it will allow investment to be opened to other instances, beyond those who currently participate in real estate transactions. Until now, legal barriers and amounts of loans existed in the industry. investment, aspects that can be overcome with technologies such as blockchains.

In the case of tokenization, an alternative opens up to expand the business options of real estate brokers and advisors.

In the Ebook Proptech Trends 2022, it is established that this instrument opens new safe and flexible opportunities backed by real estate. Through tokenization, a property makes it feasible to create fractions of digital assets that are negotiated and marketed through the traceability that guarantees the use of blockchain.

Through this channel, investment tickets are generated for 10 thousand dollars or less, a figure that was unfeasible in the recent past. Thus, technology makes the entry of new players feasible, through transparent rules and mechanisms that avoid mismanagement of resources. . It is, as we shared at some point, the possibility of democratizing and expanding investment possibilities that were previously only feasible for large investors.

It should not be ignored that in Latin America, the transformation of tangible assets into tokens opens the door to financing small and medium-sized companies, as well as infrastructure projects.

It is estimated that tokenization would generate a business worth up to $4.4 billion in the coming years, according to a report by the Capco firm.

Since the beginning of its inclusion in the market, regulation has been mentioned as one of the greatest challenges for its operation, therefore, the inclusion in the Official Gazette decree is progress.

In Mexico, it has been the National Banking and Securities Commission (CNBV) that has issued regulations for the issuance and negotiation of debt securities and shares in the form of tokens, which opened the door to the creation of financial solutions that allow fractioning assets in tokens, and their purchase and sale between investors. The same happens with crowdfunding or collective financing, an online alternative that, without the participation of financial intermediaries such as banks, allows small investors to be financially supported via a platform for the purchase of residential assets, offices, logistics, land and other types. Its operation generates specific dividends over time.

Source: https://www.elfinanciero.com.mx/opinion/claudia-olguin/2023/06/29/tokenizacion-inmobiliaria/