Monetaforge Brings Tokenisation to Real Estate

Monetaforge, a Cayman-based virtual asset services provider, offers a tokenisation platform that allows users to design, mint, issue, and manage tokens in compliance with regulations, know-your-customer requirements, and anti-money laundering procedures. Founded by Ron Sebastian and led by Doug Spencer as Chief Technology Architecture Officer, Monetaforge facilitates a marketplace and peer-to-peer exchange system for trading tokens without requiring trust between parties.
Sebastian likens the tokenisation process to using a credit card on a smartphone, as tokens are software running on the blockchain and can represent various assets. These tokens can include rules to comply with securities regulations, limiting certain investments to accredited investors. Monetaforge has so far issued 14 tokens for various projects, some of which offer profit-sharing similar to dividends.
However, investment risks exist, including unclear financial regulations, potential disputes over ownership, liquidity issues, price volatility, and market manipulation. Paul Byles, director at compliance consulting firm FTS, stresses that governance and intent are critical factors in managing these risks.
Real estate is identified as a potential use case for tokenisation, with James Bovell of RE/MAX and realtor Jim Fraser highlighting its benefits, such as fractional ownership and quicker transaction settlements. Despite these advantages, Bovell notes that tokenisation isn’t suitable for everyone and points out challenges like Cayman’s stamp duty on property transfers, which complicates the digital trading of tokenised real estate.