Tokenized real estate continues to evolve from niche experiments to serious infrastructure.
A recent report from Deloitte predicts that the tokenized real estate market could reach $ 4 trillion by 2035. Although the number is quite large, it remains a decrease in the bucket compared to the $ 658 trillion size of the global real estate sector.
The dissertation for Tokenizing Real Estate is simple: blockchain can modernize how ownership is followed, assets are accessible and capital flows in markets. Real estate is about as ‘real world’ as it becomes, and seeing tokenization reforming the largest activa class in the world speaks volumes.
To understand what is needed to actually support this transformation, I spoke with Teddy Pornprinya, co-founder of Plume Network. Plume is working on the infrastructure layer that can help to make tokenized real estate and other real-world assets, scalable, in accordance and accessible.
In our conversation, Pornprinya discusses the challenges of interoperability of cross-chain, regulatory complexity and user confidence, while explaining how plume builds for both institutional acceptance and access to the retail trade. Here is our entire Q&A.
Crypto.news: The Deloitte report predicts that $ 4 trillion real estate will be token token, which has only been removed for 10 years. Is the infrastructure of Plume willing to scale up for that level of assets -tokenization? Can you comment on some of the technical obstacles (ie latency, network capacity, transit) with which you are confronted and how it will be tackled to become an institutional grade platform on such parts?
Teddy Pornprinya: This scale of tokenization falls under our Plume Arc initiative. To support such volumes, we have built a compliance first infrastructure that directly integrates with licensed partners for compliance and on/off-chain workflows. These integrations give us jurisdictive flexibility, so whether it is active from the US or abroad, we ensure that it is on board in a conformity way.
The tokenization process itself is managed via a workflow engine that simplifies asset-onboarding for teams that are not familiar with mechanics on chains. On the infrastructure side we already have products on institutional quality such as BlackRock, Blackstone, Pimco Reits on board through our Nest application. We also actively work together with institutional partners in New York, including Apollo. Our infrastructure is already supporting Tokenized Institutional Assets and we are convinced that it can be scaled if the question speeds up.
CN: Deloitte breaks down the tokenized real estate market in three segments: private real estate funds, tokenized loans/securitizations and tokenized undeveloped projects. Which of these areas are plume networks that first concentrate, and how does that choice form the route map of your product for the coming years? Are you planning to eventually cover all these segments (or even expand it to other asset classes), and if so, how are you going to follow those extensions?
TP: Yes, we are built to support a wide spectrum of Real-World assets, including private real estate funds, tokenized loans, securitizations and more speculative or underdeveloped assets. The flexibility of our system enables us to work with projects at every stage – from the start to full market willingness.
For example, we helped a private equity fund in Texas to Tokenize his mineral assets, a traditional offline segment. For more developed players we focus on scale. Our model is end-to-end: we support the making of token, compliance and access to liquidity and presence on the market.
CN: As more real assets become tokenized, Deloitte notes the need to achieve “interoperability between protocols. How can plume networks make interoperability for Tokenized assets possible and do you want your platform to be blockchain-agent, so that tokens can move and trades freely?
TP: Yes, our approach is to make plume blockchain-agent. Our Skylink -product built in in collaboration with Layerzero enables us to arise yield and assets on plume and to create representations of those assets on other chains such as Solana, Sui and Injective.
With Skylink, end users on other block chains do not have to communicate directly with plume or use complicated bridges. They can easily deposit stablecoins in local safes, and we treat the backend processes that bridge funds to plume, manage tokenization and eventually return to the user’s chain. This creates a seamless Omnichain RWA experience, where new possibilities are unlocked for fragmented blockchain ecosystems.
CN: I have read about new structures in chains such as real estate confidence that keep real estate in a neutral external trust until a debt is repaid, so that legal contracts are effectively enclosed in blockchain tokens. How his plume networks with real -time compliance and legal enforcement in his platform design. For example, can your smart contracts automatically maintain KYC/AML chips, investor accreditation limits and jurisdiction-specific regulations when each transaction occurs?
TP: Absolutely. Real-time compliance is the core of our institutional approach. We have directly integrated compliance mechanisms into our smart contracts and token. Depending on the activation type and the legal requirements, we support both ERC-20 and ERC-3643 token standards.
This ensures that compliance is not only forced at the onboarding level, but continuously over any transaction or transfer – the level of security and auditability that settings require.
CN: What is the strategy of Plume Networks to distinguish itself in this fast-growing market, and how are you going to compete with both crypto-native platforms and traditional asset managers who are also looking for assets?
TP: Instead of competing with them, we often act as an enabler. Traditional asset managers and crypto-native protocols come to us for distribution and infrastructure. We offer a complete stack: conforming onboarding, issuing assets, liquidity breach and access to our network of users.
Where we really stand out is able to combine the implementation of the chain with compliance with institutional quality and go-to-market options. We help bring assets to the chain and help them find a market through community involvement, token design and the recovery of something that do not do either established exploiters, neither Defi-Native Protocols.
CN: Although tokenization promises to democratize investments, retail participation in real estate is historically limited. What do you see as the most important friction points that are prevented that everyday investors embrace tokenized assets (for example, knowledge gaps, legal obstacles or problems with user experience)? How do plume networks work to reduce these frictions for retail investors and at the same time meet the needs of large institutional participants?
TP: Education remains the biggest barrier. Many retail investors do not fully understand what they are investing in, especially when it comes to Real-World assets, which are more complex than typical crypto tokens. As speculative trade coolings and more users shift to fundamental investments, hunger for RWA exposure grows.
We also incubated a product Nest This helps to resolve the KYC Ondernemnis for non-American retail users. Nest allows users to deposit into a safe that is managed by a KYB-compliant entity that is registered on the Marshall Islands. This entity acquires institutional assets and question marks that represent their economic interest. It is related to how DAI abstracts the collateral management. With this structure, retail users can get exposure to RWAS without violating jurisdiction restrictions.
CN: With potential trillions of dollars in assets that will be signed in the coming decade, safe custody is a crucial care. A solution would be owned in neutral external trusts until the obligations have been met, which underlines the importance of investor protection. How is it about tackling custody and security for Tokenized assets on your network? Do you have to collaborate with established managers or can you develop internal solutions to ensure that both institutional and retail investors believe that their digital assets are safe?
TP: Yes, we work together with Anchorage, with Fireblocks with the idea that you should definitely have the preservation partners of institutional quality for some of these assets because it is about the safety of the funds, the assets. So yes, we work with some of these institutional partners and many of them are also investors.
Credit : cryptonews.net
