Before investing in tokenized real estate, understand how you can exit.
Is there an active secondary market? Who provides the bids? Does liquidity depend on the platform buying tokens back?
These are very different arrangements, with different risks for investors. đ
Everyone talks about RWA liquidity. But who is on the other side of the exit?
A token can change hands in seconds. A sale still needs a cash buyer.
A BIS working paper found that the liquidity advantage in tokenized real estate depended on platform buybacks.
Those buybacks gave sellers an exit, but came with higher insolvency risk for the platform.
Tokenization can make an asset transferable. It canât manufacture a buyer.
"Tokenization Doesnât Create Liquidity"; link below â