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Tokenized real estate vs REITs
The short answer
Tokenized real estate and REITs (Real Estate Investment Trusts) both let you invest in property without buying a whole building, but they work very differently. The short version: a REIT gives you shares in a managed portfolio; tokenized real estate gives you direct fractional exposure to specific properties you choose, held and traded on-chain.
Neither is universally better. Which fits you depends on how much control you want, where you invest from, and how you think about liquidity.
Side by side
| Dimension | Tokenized real estate | REITs |
|---|---|---|
| What you hold | Tokens tied to one specific property you choose | Shares in a company that owns a portfolio of properties |
| Asset selection | You pick individual buildings, cities, and countries | The fund manager picks; you get the whole basket |
| Minimum investment | A single token, typically a small fraction of the property | One share (public REITs); private REITs often set high minimums |
| Income | Rental income distributions from your specific property | Dividends from portfolio-wide income (typically ≥90% of taxable income) |
| Trading venue | Blockchain marketplaces, 24/7, settled on-chain | Stock exchanges during market hours (public REITs) |
| Liquidity | Depends on marketplace demand today; instant swaps via the POINT liquidity layer are on the roadmap | High for public REITs; private/non-traded REITs can lock funds for years |
| Transparency | Ownership and transfers verifiable on-chain, per property | Quarterly/annual fund reporting, portfolio level |
| Management fees | No fund-level management fee; marketplace and protocol fees per transaction | Ongoing management and fund expenses reduce returns |
| Governance | Token holders can take part in protocol governance (via sBST) | Shareholder votes on corporate matters |
| Access requirements | Crypto wallet + KYC on a marketplace; some countries unsupported | Brokerage account; accreditation rules for some private REITs |
General comparison for educational purposes. Specifics vary by REIT, marketplace, and jurisdiction. Nothing here is investment, legal, or tax advice.
Where tokenized real estate shines
- Granular choice: back a specific building in a specific city instead of a blended portfolio.
- Low entry: start with a single token rather than a fund minimum.
- On-chain composability: property tokens can plug into DeFi: staking on Oceanpoint converts a rental income stream into BST rewards, and the upcoming POINT liquidity layer is designed for instant exits.
- Borderless rails: the same marketplace infrastructure works across countries, with ownership verifiable on-chain.
Where REITs still win
- Deep liquidity today: large public REITs trade like any stock, with tight spreads.
- Built-in diversification: one purchase spreads risk across dozens or hundreds of properties.
- Established regulation: decades of case law, standardized disclosures, and familiar tax treatment.
- Zero crypto overhead: no wallet, no gas, no on-chain learning curve.
Honest framing matters: tokenized real estate is the younger model. Its liquidity is still being built. That is exactly the problem the Oceanpoint protocol exists to solve.
Getting started
If granular choice and on-chain yield appeal to you, the path in is short: browse tokenized properties on a marketplace, complete KYC, and buy your first BSPT (Blocksquare Property Token), then decide whether to hold for rental income or stake it for BST rewards.