Institutional Traders Eye Blockchain-Tokenized Real Estate

In a recent interview at the Toronto Collision Conference, Kunal Bhasin, a digital asset co-lead at KPMG Canada, stated that institutional traders are likely to purchase blockchain-tokenized shares of high-value industrial real estate as more opportunities arise. Bhasin noted that tokenization could democratize ownership of significant properties like Toronto’s Eaton Centre, traditionally held by large real estate and pension fund managers. He highlighted that tokenized real estate could become a major institutional use case in the crypto industry, though many institutional DeFi participants prefer a more controlled environment with strict know-your-client (KYC) checks.

Despite the gradual adoption of tokenized real estate, such as Bitfinex Securities’ unsuccessful funding attempt for a Hilton hotel in El Salvador, Bhasin remains optimistic. He pointed to the relative success of BlackRock’s USD Institutional Digital Liquidity Fund (BUDIL), which has amassed $462.7 million since its launch in March.

Bhasin acknowledged that reputational risks and fraud concerns still deter many asset management firms and banks from the crypto space. However, he noted that advancements in blockchain analytics, like those from Chainalysis, are helping to mitigate these risks. Bhasin concluded that not engaging with crypto and digital assets might soon be a career risk, as competitors who offer these services gain a market advantage.