Tokenized Real Estate Market Expands Despite Operational Risks

The tokenized real estate market has been expanding rapidly, with platforms such as Lofty and Securitize offering investors a way to purchase fractional ownership stakes in physical properties using cryptocurrency. RealT was once the largest platform, having tokenized over 700 properties worth approximately $130 million on Ethereum and Gnosis Chain, but announced voluntary liquidation in July 2026 after suspended distributions and a Detroit lawsuit.

Lofty operates on Algorand with 160 properties totaling $89 million in tokenized value, allowing investors to start from $50 per token. Securitize underpins over $22 billion in tokenized real-world assets as of mid-2026, including funds for BlackRock, Apollo, Hamilton Lane, KKR, and VanEck on its platform.

Investors should be aware that the model converts property equity into blockchain tokens that represent proportional claims on rental income and appreciation. Rental yields on tokenized properties typically range from 5% to 12% annually, depending on the property type, location, and management costs.