FAQWhat is a REIT on blockchain?
Real Estate Investment Trusts (R.E.I.T) can benefit from blockchain by allowing for easier transaction tracking and recording, as well as helping reduce the length of the real estate financing process. Blockchain makes it simpler to create a digital ledger that monitors and records the numerous transactions involved in managing a large portfolio of real estate assets. This can reduce the high legal and administrative costs often associated with REITs. It also provides better visibility for investors into the underlying assets of a REIT, helping investors better evaluate risk. The immutable record on blockchain improves access and increases trust between parties. In addition to lower administrative costs and improved trust, blockchain can also increase liquidity for private REITs, enabling seamless transfers between buyers and sellers in place of today’s slow and cumbersome process. A more trustworthy record, automated administration and recording, and increased liquidity will increase efficiency and lead to reduced risks, reduced costs, and time savings.