From Property to Investment Instrument: How Tokenisation Increases Real Estate Investment Value

Why Marketability Matters More Than Price

Real estate is often judged by its asset value: location, yield, scarcity, long-term appreciation.

But in capital markets, investment value is shaped by something else: marketability
how easily an exposure can be accessed, priced, rebalanced, and exited.

This is where tokenisation matters. Not because it automatically makes property “worth more,” but because it has the potential to make real estate more investable, by reducing the frictions that keep capital stuck, slow, and expensive to move.

Investment Value Is Not Asset Value

Traditional real estate can be strong as an asset and weak as an instrument.

Investors don’t only ask:

• “Will this property perform?”

They also ask:

• “How easily can I size my position?”
• “How quickly can I adjust or exit if risk changes?”
• “How costly is it to move in and out?”

When these answers are uncertain or expensive, capital applies a discount, not necessarily because the asset is bad, but because the exposure is rigid.

What Tokenisation Improves

Tokenisation does not change the bricks.

It changes the market plumbing around ownership, transfer, and settlement, the layer that determines whether an asset is operationally investable.

IOSCO’s analysis highlights where tokenisation can improve lifecycle activity and reduce inefficiencies, especially in processes that are still manual, fragmented, and slow, including settlement and collateral workflows where delays can create errors, costs, and liquidity constraints.  

That matters because marketability improves when friction falls.

Why This Matters at Capital-Market Scale

A useful way to understand “investment value” is to look at how large markets behave when settlement and collateral mobility improve.

IOSCO cites the World Economic Forum’s estimates that:

• the global collateral market is worth more than $25 trillion
• the global repo market is more than $15 trillion outstanding, with ~$3–4 trillion daily turnover  

When markets operate at that size, even small improvements in settlement speed and collateral reuse can change how efficiently capital is deployed.

IOSCO also references analysis suggesting that programmable-ledger-powered collateral management could unlock more than $100 billion annually in capital that could be redeployed more efficiently.  

This is the core mechanism: tokenisation increases “investment value” by potentially reducing idle capital and operational drag, the very things that make real estate exposure feel heavy and hard to manage.

The Bermondsey Project - London

Best Price-to-Value Ratio in the Area - Perfect for investors

Evidence That Friction Reduction Can Be Real (Not Just Theory)

IOSCO includes concrete operational examples in tokenised collateral/repo infrastructure:

• Kinexys by J.P. Morgan has processed over $2 trillion in tokenised transactions since launch, with daily volumes exceeding $3 billion (as cited in that section).  
• Broadridge reports processing $2 trillion in transaction value monthly, and its LDR Intraday Repo solution delivering a 50–60% average reduction in transaction costs, alongside improved liquidity management.  

These are not real-estate examples directly but they validate the broader claim: when tokenisation is applied to lifecycle and settlement plumbing, it can reduce friction at scale.

For real estate, that matters because investment value rises when:

• transaction costs fall
• settlement becomes faster and more reliable
• capital is less frequently “stuck” in slow processes

Demand Exists But Adoption Is Still Early