It has been claimed this week that several residential and commercial development projects in and around London are being sold using tokenisation to attract investor funds.

This method, which has been bubbling under as a form of investing in property for several years but has yet to really take off, is now beginning to gain a foothold, claims Darren Carvalho, co-CEO of MetaWelath (main image), who is a former Goldman Sachs vice president.

He says the tech involved will help break down the barriers to investing in property which has, until now, kept out the average investor with only modest sums to play with.

“Adoption has already begun; both residential and commercial projects in and around London are in full swing, and real estate agents and property developers are working with the industry’s blockchain-based newcomers to access untapped capital and boost market efficiency,” he says.

£85 per token

His firm, which offers its service via an app, has recently launched The Square, which is within a Fosters + Partners designed tower in Shoreditch and which is being sold via tokenisation with an entry price for a single token of around £85.

Tokenisation, for agents unfamiliar with the concept, involves recording ownership of property on a blockchain, creating digital tokens that represent shares of ownership.

These tokens can be divided, stored, and traded digitally, allowing individuals to invest in assets like real estate without full ownership.

Tokenisation or property ownership also has the backing of HM Land Registry as part of its efforts to create a fully-digital property market.

The first reported sale took place in 2022 when land on the Hampshire coast was sold using a non-fungible token for a total of £1.9 million.

“Tokenisation is breaking down barriers to real estate investments, making it possible for anyone, anywhere, to invest in property,” says Carvalho.