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Empirical Evidence on the Ownership and Liquidity of Real Estate Tokens

In: Blockchain, Crypto Assets, and Financial Innovation

Author

Listed:
  • Laurens Swinkels

    (Erasmus University Rotterdam)

Abstract

To better understand the potential and limitations of the tokenization of real asset markets, empirical studies need to examine this radically new organization of financial markets. In our study, we examine the financial and economic consequences of tokenizing 58 residential rental properties in the US, particularly those in Detroit. Tokenization aims at fragmented ownership. We found that the residential properties examined have 254 owners on average. Investors with a greater than USD 5000 investment in real estate tokens, diversify their real estate ownership across properties within and across the cities. Property ownership changes about once yearly, with more changes for properties on decentralized exchanges. We report that real estate token prices move according to the house price index; hence, investing in real estate tokens provides economic exposure to residential house prices.

Suggested Citation

  • Laurens Swinkels, 2025. "Empirical Evidence on the Ownership and Liquidity of Real Estate Tokens," Springer Books, in: Gang Kou & Yongqiang Li & Zongyi Zhang & J. Leon Zhao & Zhi Zhuo (ed.), Blockchain, Crypto Assets, and Financial Innovation, pages 434-467, Springer.
    • Handle: RePEc:spr:sprchp:978-981-96-6839-7_16
    DOI: 10.1007/978-981-96-6839-7_16
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    Cited by:

    1. Junliang Luo & Katrin Tinn & Samuel Ferreira Duran & Di Wu & Xue Liu, 2025. "Decoding RWA Tokenized U.S. Treasuries: Functional Dissection and Address Role Inference," Papers 2507.14808, arXiv.org, revised Apr 2026.
    2. Wendi Zhang & Bin Li & Alan Wee-Chung Liew & Eduardo Roca & Tarlok Singh, 2023. "Predicting the returns of the US real estate investment trust market: evidence from the group method of data handling neural network," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-33, December.
    3. Li XU & Liviu Marian Matac & Juan Felipe Espinosa Cristia & Rui Dias & Codruta-Daniela Pavel, 2025. "Utilizing the real estate investment trusts for portfolio optimisation by application of genetic algorithm," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-11, December.
    4. Kreppmeier, Julia & Laschinger, Ralf & Steininger, Bertram I. & Dorfleitner, Gregor, 2023. "Real estate security token offerings and the secondary market: Driven by crypto hype or fundamentals?," Journal of Banking & Finance, Elsevier, vol. 154(C).
    5. Giulio Cornelli, 2025. "When bricks meet bytes: does tokenisation fill gaps in traditional real estate markets?," BIS Working Papers 1311, Bank for International Settlements.
    6. Swinkels, Laurens, 2024. "Trading carbon credit tokens on the blockchain," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 720-733.
    7. Kreppmeier, Julia & Laschinger, Ralf & Steininger, Bertram & Dorfleitner, Gregor, 2023. "Real Estate Security Token Offerings and the Secondary Market: Driven by Crypto Hype or Fundamentals?," Working Paper Series 23/6, Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance.
    8. Manahov, Viktor & Li, Mingnan, 2025. "The digitalisation of the real estate market: New evidence from the most prominent crypto hacker attacks," International Review of Financial Analysis, Elsevier, vol. 103(C).
    9. Chao Li & Zhanjun Xing & Xiang Li & Liping Chen, 2026. "How Does Automation in the Workplace Impact Workers’ Happiness? Disentangling the Competing Mechanisms Through Income Shock and Reduced Working Time," Journal of Happiness Studies, Springer, vol. 27(2), pages 1-41, February.
    10. Aharon, David Y. & Ali, Shoaib & Brahim, Mariem, 2024. "Connectedness at extremes between real estate tokens and real estate stocks," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    11. Efim Zhitomirskiy & Stefan Schmid & Martin Walther, 2023. "Tokenizing assets with dividend payouts—a legally compliant and flexible design," Digital Finance, Springer, vol. 5(3), pages 563-580, December.
    12. Rischan Mafrur, 2025. "Tokenize Everything, But Can You Sell It? RWA Liquidity Challenges and the Road Ahead," Papers 2508.11651, arXiv.org.
    13. Andry Alamsyah & Gede Natha Wijaya Kusuma & Dian Puteri Ramadhani, 2024. "A Review on Decentralized Finance Ecosystems," Future Internet, MDPI, vol. 16(3), pages 1-29, February.
    14. Abdullah, Mohammad & Adeabah, David & Abakah, Emmanuel Joel Aikins & Lee, Chi-Chuan, 2023. "Extreme return and volatility connectedness among real estate tokens, REITs, and other assets: The role of global factors and portfolio implications," Finance Research Letters, Elsevier, vol. 56(C).
    15. Yousaf, Imran & Assaf, Ata & Demir, Ender, 2024. "Relationship between real estate tokens and other asset classes: Evidence from quantile connectedness approach," Research in International Business and Finance, Elsevier, vol. 69(C).
    16. Samet Gunay & Emrah Ismail Cevik & Dávid Zoltán Szabó, 2025. "Engagement of true intelligence in financial forecasting: interactions of blockchained sectors and artificial intelligence," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 11(1), pages 1-28, December.

    More about this item

    Keywords

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    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • K25 - Law and Economics - - Regulation and Business Law - - - Real Estate Law
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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