Template-Type: ReDIF-Paper 1.0
Author-Name: Giulio Cornelli
Author-X-Name-First: Giulio
Author-X-Name-Last: Cornelli
Title: When bricks meet bytes: does tokenisation fill gaps in traditional real estate markets?
Abstract: Using novel US data from multiple platforms over 2019–25, I show that real estate tokenisation fills gaps in traditional markets. The supply of tokenised real estate is driven by pricing, demand, liquidity and supply in the physical property market. These factors affect the supply of traditional real estate properties and Real Estate Investment Trust (REIT) portfolios differently. Areas with limited access to credit see more rapid growth in tokenised properties, suggesting tokenisation may bridge gaps in access to real estate. Finally, to test whether tokenisation can address liquidity gaps, I analyse trading activity around natural disasters as an exogenous liquidity shock. Trading in tokenised properties rises by 35% cumulatively over the two days following a disaster. This suggests that tokenisation can preserve liquidity when it typically dries up, but only if platforms provide buyback features, which comes with higher insolvency risk.
Creation-Date: 2025-11
File-URL: https://www.bis.org/publ/work1311.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work1311.htm
File-Format: text/html
Number: 1311
Keywords: real estate, tokenisation, tokenised real world assets, tokenised housing, liquidity
Classification-JEL: D02, G12, O33, R31
Handle: RePEc:bis:biswps:1311