We have all fallen victim to window shopping, especially on platforms like Zillow. Even when people aren’t looking to buy a house, real estate platforms have become a way to escape and search for properties from around the world. You can imagine what it would be like to live in your dream home and examine everything from the bathrooms to the door knobs on the kitchen cabinets. In a sense, Zillow is a reimagined form of escapism.
But what if you were able to purchase a property you never thought you could buy? Tokenized RWAs have presented an alternative way to invest, allowing people to own fractional shares in property thousands of miles away from where they physically live.
Investing in real estate was once considered the domain of a select group of affluent individuals and institutional investors. This stemmed from high capital requirements and complex processes that closed off this market. Traditionally, only those with substantial financial resources could afford to purchase multiple properties or those in prime locations, making it difficult for traditional investors to enter the field.
However, tokenized RWAs are allowing anyone to take part in property ownership. FreeBnk, a dApp helping non-crypto natives invest in crypto financial services, has launched its tokenized RWA platform allowing investors to participate in real estate investing through partial ownership.
Investors will be able to purchase shares of FreeBnk’s first property, located in Dubai, through its dApp, dismantling conventional obstacles of property ownership. By investing in FreeBnk’s tokenized RWAs, investors can expect an annual return of 15 percent, with a 9 percent rental yield for their investment.
Dubai has emerged as a hub for real estate, attracting investors and developers worldwide. FreeBnk has picked Dubai as its first property location due to the city’s infrastructure and business-friendly, innovation-focused, environment, making it appealing for property investors. The fintech platform has invested 250,000 AED into its first property.
The CEO, Yunus Emre Ozkaya says: “By tokenizing properties, our goal is to empower investors across the globe, showcasing the unique benefits of tokenized RWAs and offering new avenues for investment. Real estate, known for its relative stability, provides a passive income opportunity amidst global economic fluctuations. We aim to cater not only to crypto enthusiasts but also to newcomers seeking alternative investment options.”
The process of using FreeBnk’s tokenized RWA platform includes three steps. First, users can search for properties through the FreeBnk app, filtering for property type, return on investment, and yield, finding investments that meet their financial goals.
Once a property is identified, investors can easily purchase shares with minimal steps, as FreeBnk uses smart contracts to handle all aspects of property ownership. FreeBnk automatically manages the portfolio for its clients, ensuring the rental income is deposited directly into the investor’s accounts.
Unlike traditional investment methods, physical assets offer investors a greater sense of security. As the DeFi ecosystem expands, tokenized RWAs are paving the way for more inclusive investment options, allowing participants access to markets that were once out of reach.
