It’s easy to get in. But can you get out?
That’s the question on every investor’s mind as tokenized real estate surges into the mainstream. Villas in Dubai sell out in minutes, and funds in Asia are pioneering fractional access to assets once locked behind velvet ropes. Yet despite the fanfare, one crucial element is missing: the ability to exit as quickly as you enter.
In 2025, that gap is closing fast and liquidity may become the make-or-break feature of the entire tokenized real estate industry.
🏙️ Stay on top of the future of investments
(Real Estate Tokenization News, 25th of August 2025)
XRP News Today: Blockchain Meets Real Estate Tokenization—Reshaping Investment Landscapes”
This article explores how the XRP Ledger, with its decentralized exchange and lending vault features, is increasingly being positioned as a secure infrastructure for tokenizing real estate and other Real World Assets (RWAs), particularly for institutional clients. It also notes market forecasts suggesting the RWA tokenization space could grow to $16 trillion by 2030. (learn more)
“Why 92% of Property Investors Misunderstand Real Estate Tokenization”
A timely piece challenging common misconceptions around real estate tokenization—like confusing it with REITs. It highlights benefits such as fractional ownership, enhanced liquidity, and lower entry barriers, while pinpointing regulatory uncertainty as a key adoption hurdle. It further anticipates explosive growth—from under $0.3 trillion in 2024 to $4 trillion by 2035. (learn more)
“Tokenization Report Examines How Real World Assets (RWAs) Are Bridging Gap Between TradFi and DeFi”
This report summarizes insights from CertiK’s 2025 Skynet RWA Security Report and Citigroup’s GPS Report, emphasizing how tokenization—especially of real estate—could merge traditional finance and DeFi by delivering transparency, efficiency, and broader access. However, it also warns of evolving security challenges and regulatory considerations. (learn more)
“How Will Real Estate Tokenization Impact the Property Market in the Next Five Years?”
A forward-looking analysis outlining how converting property ownership into digital tokens—via blockchain—can democratize access, enhance liquidity, and reshape real estate investment dynamics over the next five years. (learn more)
“What is Tokenization and Is It Crypto’s Next Big Thing?”
This Reuters article discusses tokenization broadly—including real estate—highlighting its potential to democratize investment and improve liquidity. It notes early optimism driven by regulatory shifts and interest from major players like Bank of America, Citi, BlackRock, and Coinbase. (learn more)
The Illiquidity Paradox
Tokenization promised a revolution: fractional access, lower barriers, and faster settlement.
But so far, most projects have resembled gated communities — easy to buy into, hard to leave. Investors can technically sell their tokens, but in practice, secondary demand has been thin. Without liquid markets, tokenized real estate risks becoming little more than digital paperweights. Liquidity isn’t just a convenience — it’s trust. Institutions will not commit billions until they see seamless entry and exit.
For tokenization to grow beyond speculative pilots, liquidity must become its defining feature.
Regulators Step Into the Ring
The good news?
Governments and regulators are finally moving. Hong Kong’s Securities and Futures Commission (SFC) has introduced licensing regimes for tokenized exchanges, while Singapore’s MAS is paving the way for institutional-grade trading venues . In Europe, MiCA is expanding to cover tokenized securities, creating a harmonized framework across the bloc. These changes matter because they open the door to regulated secondary markets.
For investors, that means the possibility of trading tokens like shares on a stock exchange — with legal protections and compliance baked in.
Case Studies: From Theory to Practice
In late 2024, Asia’s first tokenized real estate fund allowed limited partners to sell portions of their holdings mid-term.
Instead of waiting out a 10-year lockup, investors could rebalance portfolios on demand. Platforms like ADDX, INX, and Oasis Pro Markets are also piloting secondary trading of real-world asset tokens. These case studies prove what many critics doubted: tokenized property can actually trade in a liquid environment.
The early numbers are small, but the blueprint is now real.
Why 2025 Is the Liquidity Test Year
This year marks a turning point.
Institutional appetite is building, but capital won’t scale until liquidity is real, visible, and reliable. Tokenized real estate needs more than hype — it needs functioning marketplaces where investors can enter and exit with confidence. The winners of 2025 will be the platforms that move beyond token issuance to secondary trading.
Just as important, they’ll need to attract consistent volume, proving that liquidity is not just possible but sustainable.
That’s a wrap!
Talk soon
Kevin
Ready to see tokenization done right?
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