Roofstock onChain Vice President explains how Web3 and real estate connect

The tokenization of real-world assets has been suggested as a major use of blockchain technology that could drive Web3 adoption. On episode 35 of Cointelegraph's Hashing It Out podcast, host Elisha Owusu Akiau interviews Sanjay Raghavan, vice president of the Web3 initiative at Roofstock onChain, about real estate on the blockchain and how digital real estate investing can interact with the decentralized token market and decentralized finance. Landscaping. Raghavan talks about non-fractional tokens (NFTs), regulations and concerns related to Web3 real estate platforms.

Raghavan explains how real estate can be sold on the blockchain using NFTs. Companies selling real estate on a chain must first purchase the property and form a limited liability company (LLC). Then an NFT is created, which is related to the ownership of the LLC. When users buy an NFT, they buy the LLC, which means they buy the property.

For Hashing It Out, Raghavan says the rules for tokenizing real-world assets can be complex. In the United States, for example, different states have laws on the sale of real estate, which means navigating different compliance requirements across the 50 states.

Beyond bringing people from the traditional real estate market to Web3, Raghavan believes that crypto natives can look to real estate tokens as a diversification tool. He explains that most of the investment options in the industry may be highly correlated with the price of Bitcoin (BTC), and the presence of other stable and more related assets may be the reason for exposure to real estate NFTs.

Raghavan talks about the fragmentation of assets, including NFTs, which may require running a securities program that makes them unattractive to companies operating in the United States. On the other hand, non-U.S. citizens may receive fractional NFTs in the future if entities outside the jurisdiction purchase assets and sell NFTs in other markets.

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This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.