Tokenization of CRE – (Kim)

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Commercial real estate is a critical component of individual investment portfolio construction. Because real estate has a low correlation to stocks and bonds and is a lagging indicator that rises and falls after the rest of the economy, it is a good source of portfolio diversification and global economic risk mitigation. Given the large dollar value of real properties however, the entry barrier associated with purchasing these assets is too high for most people to enable widespread participation.

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While the current digital asset ecosystem is opening new opportunities to democratize and globalize investment in the real estate market, existing methods for tokenizing real estate are imperfect. Currently, there are three primary ways to tokenize commercial real estate and while all three provide economic value to investors, none provide utility value. In addition, each option has significant limitations. The first common method is tokenization of real estate debt. While this practice provides its investors with fixed income, the amount of income tends to be small. In addition, investors do not participate in any value appreciation of the underlying asset. A similar construct, tokenization of the operating income generated by real estate, may produce a larger income stream, investors face potential inconsistency in that income as property operating results often vary significantly from one year to the next. In addition, like the debt investors, these investors also do not participate in asset appreciation. While the third method, tokenization of real estate equity does entitle participants to share in value appreciation, it also can be subject to volatile income streams and a significant risk of investment capital loss.
Tokenization of CRE
What is needed in the commercial real estate tokenization space, is a new type of digital asset that protects investors against the loss of capital through full principal protection, while also providing unlimited upside earnings potential consisting of both stable interest income and participation in both asset operating income and value appreciation. Optimally, the asset would also afford utility value to token holders. Through its platform, Great X is offering investors the opportunity to invest in a new type of digital asset, US Treasury Note-Backed and Specific Property Asset-Linked Digital Assets. GREATX is a capital protected, yield enhancing native token, that can be linked to specific real estate assets of an investor’s choice from a pool of properties for the economic ownership value (business income and appreciation). This token features a guarantee of 100% repayment of invested capital; so long as the Great X digital token is held to maturity, the payout is the original principal plus any earnings. GreatX is revolutionizing the commercial real estate tokenization space, making the investment aspirations of more people a reality.


This commentary is provided as general information only and is in no way intended as investment advice, investment research, a research report or a recommendation. Any decision to invest or take any other action with respect to the securities discussed in this commentary may involve risks not discussed herein and such decisions should not be based solely on the information contained in this document.

Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed herein are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. GreatX disclaims any obligation to update or revise any statements or views expressed herein.

In considering any performance information included in this commentary, it should be noted that past performance is not a guarantee of future results and there can be no assurance that future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which information, although believed to be accurate, has not been independently verified. GreatX and/or certain of its affiliates and/or clients hold and may, in the future, hold a financial interest in securities that are the same as or substantially similar to the securities discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and GreatX and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities. This commentary has not been reviewed or approved by any regulatory authority and has been prepared without regard to the individual financial circumstances or objectives of persons who may receive it. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

About the Author

Kim is a founding member of GreatX and a seasoned professional with experience in the commercial real estate capital and structured finance debt capital market industries. Her stellar portfolio makes her the most trusted name in financial services.

About the Company

GreatX is a new-age wealth creation digital asset backed by the full faith and safety of U.S Treasury Bonds. These digital tokens are revolutionizing legacy products with modern instruments to open global avenues, especially for investors across the globe who are interested in investing in the U.S. GreatX enables global investors to own real estate in the U.S and earn guaranteed returns, assured security, and unmatched benefits. GreatX are smart securities democratizing wealth through decentralization and opening the gates of opportunity to a global audience.
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