Real estate tokenization consulting
- Project structuring and legal framework development
- Support for issuing tokenized investment instruments
- Ensuring compliance with regulatory requirements
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Conversion of rights to a real estate asset into digital form, including ownership shares, income rights, or other investment interests.
Division of asset value into more accessible shares, lowering entry barriers and broadening the pool of potential investors.
Creation of a more flexible financing model by expanding the investor base and optimizing fundraising processes.
Reduction in transaction execution and settlement timelines compared to traditional structuring and financing mechanisms.
Formalization of participant rights, role distribution, and governance procedures related to asset ownership and administration.
Establishment of a clearer framework for ownership structure, rights transfers, and distribution of returns within the selected model.
Ability to define investor exit terms and mechanisms in advance within the project’s legal and contractual framework.
Creation of conditions for future transfer or circulation of tokenized rights within applicable regulatory frameworks and established limitations.
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Determination of the legal classification of the token and project, analysis of applicable legislation and regulatory requirements, and development of a compliant legal framework.
Creation of the project’s legal structure, including SPV or holding models, selection of financing instruments, implementation of security mechanisms, and establishment of cash flow distribution procedures.
Definition of the rights attached to the token, circulation terms, transfer restrictions, redemption or repayment mechanisms, and corporate action parameters.
Drafting of key transaction terms, investor information materials, risk disclosures, subscription agreements, and all other documentation required for placement.
Development of KYC and AML frameworks, investor and counterparty verification, source of funds analysis, sanctions screening, and broader compliance procedures.
Design of digital asset custody and recordkeeping models, settlement procedures, escrow mechanisms, and access key management approaches.
Selection and legal assessment of technology providers, development of contractual frameworks, service level structuring, and management of third-party operational risks.
Structuring of fiat or digital payment models in accordance with payment regulations and the operational requirements of selected providers.
Development of investor admission procedures, participation criteria, investor segmentation by qualification status, and distribution rules for the offering.
Establishment of the operational framework following issuance, including disclosure obligations, ongoing reporting, and secondary market support within applicable regulatory frameworks.
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The iWorld legal team provides consulting support for projects involving the tokenization of rights to underlying assets and/or economic claims, including:
Real estate tokenization is the process of digitally representing rights to a real estate asset through blockchain-based tokens. These tokens may reflect ownership rights, fractional interests in the property, or rights to income generated by the asset.
This depends on its legal classification within the relevant jurisdiction. In many cases, a token may be recognized as a security if it grants investment-related rights, such as profit participation or income distribution. In such cases, securities laws and financial market regulations will apply.
In practice, tokenized real estate projects often use a special purpose vehicle (SPV) structure, where the property is held by a dedicated legal entity. Investors acquire tokens representing their rights in relation to that entity, such as ownership interests or economic rights.
Secondary market trading depends on the project’s legal structure and applicable regulatory framework. If tokens are classified as securities, their transfer may be restricted, for example to qualified investors only or through licensed trading platforms.
Real estate tokenization is most actively developing in jurisdictions with established digital asset and investment regulations, including the European Union, the United Arab Emirates, Singapore, and Switzerland. Jurisdiction selection depends on the project’s objectives, investor structure, and capital raising model.
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