RealX's 'The Box' Aims to Unlock Multi-Billion Dollar Real Estate Market with Tokenisation
RealX has launched 'The Box', an infrastructure aimed at bridging the gap in real estate tokenisation. According to Manish Kumar, Co-Founder & CEO of RealX, tokenisation is a complex process that requires more than just technical solutions.
The Box enables the tokenisation of properties and other assets by dividing ownership into fractional units called FRAX. Each FRAX represents 1 sq. inch of undivided area and is legally recognized under Indian property law as a distinct co-ownership right. This makes it possible for investors to acquire a direct, secure, and transferable right to the asset.
RealX's Secure and Direct Rights (SDR) mechanism ensures that the blockchain-based digital record of ownership is directly linked to the legal fractional right. This allows for transparent and efficient transfer of ownership, making it more accessible to retail investors.
The Box offers a platform-as-a-service model for developers and businesses to launch tokenised offerings under their own brands. The revenue comes from usage fees and performance fees when the investor exits. RealX estimates that the Indian real estate market alone is worth several trillion dollars, and even a modest share of this could become a multi-billion-dollar infrastructure layer.