Tokenized asset-backed securities (TABS) for real estate investments

Tokenized asset-backed securities (TABS) have emerged as a ground-breaking innovation in the real estate sector, providing investors with a new avenue by which to participate in this traditional market. These instruments combine blockchain technology's benefits and strive to address the challenge of how smaller investors can access real estate. Historically, property has been a significantly large but illiquid asset class but for longer term holders - a lucrative investment opportunity. At its core, tokenized asset-backed securities represent ownership in a real estate asset through blockchain tokens. These tokens (often called security tokens) are created and managed using smart contracts, which themselves are self-executing contracts with the terms of the agreement directly written into code. Using blockchain technology in this context brings several advantages, including increased transparency, efficiency and smaller minimums required to gain exposure thus greater accessibility. He…