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Where To Buy Tokenized or Fractionalized Real Estate and Art

11 mins
Updated by Dirk van Haaster
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Art and real estate have been associated with wealthy people for centuries. This is primarily because the entry barriers to owning high-end art or property are quite high. But those barriers are shifting. Today, thanks to fractionalized real estate and art tokenization, it’s possible for small-scale investors to begin investing in real estate or digital art for as little as $20. This guide lists the top fractional real estate and art investment platforms that enable you to buy tokenized assets.

Top 5 platforms to buy fractional and tokenized assets

There are several tokenized asset investment and fractional ownership platforms you can use to buy tokenized or fractionalized art and real estate. Let’s look at the top five platforms you can utilize today.  

1. Ark7

Invest in rental homes & earn $50 bonus
Fractional real estate investing
One-time 3% sourcing fee
Welcome bonus
$50 when invest $1,000

2. Angelo

Collect art tokens & meet the artists
SocialFi art marketplace
1% per trade on Angelo Marketplace (with $1.50 min fee)
Welcome bonus
$10 trading voucher
Tokenized real estate investing
Current business model is based on monthly subscription fees
Fractionalized tokenized real estate
A single token for RealT properties costs between $50 and $150 per token
RWA tokenization
The pool creators set their own swap fee

What are fractionalized assets?

Fractionalized asset investing is when several investors pool together funds to purchase a portion of a high-value asset like artwork, collectibles, or real estate, allowing each investor to hold a fraction of a particular asset.  

Fractionalization is the process of subdividing a single asset, such as real estate, into small, tradeable units. These fractions then represent a corresponding ownership stake in the real estate asset. Fractionalization allows investors to buy a fragment of a high-value asset, like artwork, luxury goods, or real estate, without buying the whole asset altogether. 

Fractionalization is particularly prevalent in the real estate industry as it allows small-scale investors to pool funds together and participate in a market with generally high barriers to entry.  

What are tokenized assets?

Blockchain tokenization is the process of digitizing assets and depicting them as digital tokens on a particular blockchain. Each token then becomes a representation of the fractional ownership of the underlying asset. Tokenization can also be applied to real-world assets (RWAs) like commodities, intellectual property, real estate, and even stocks. 

Almost any asset can be tokenized, as tweeted by DefiHawk, a DeFi researcher and writer.

While tokenization can happen to almost any RWAs, their most common use cases are currently in the art and real estate sectors. For example, tokenization makes it possible for renowned physical art to be converted into digital art and for art enthusiasts to own a fraction of it, thus democratizing the art market. 

Didi you know? The real estate tokenized market is projected to grow to an 18.2 billion dollar industry by 2032, as reported by Forbes.

Tokenization vs. fractionalization

Essentially, both fractionalization and tokenization allow investors to enjoy fractionalized ownership in high-value assets that they would have otherwise been unable to access. Although tokenization and fractionalization offer alternative art and real estate investment options, they have some differences, as shown below:

Key aspectsFractionalizationTokenization 
LiquidityFractionalized assets are managed by asset managers or financial institutions. Tokenized asset platforms can be accessed directly by investors without the need for any intermediaries thus reducing management fees.
Market accessFractionalization is facilitated via mutual funds or asset-backed securities in the TradFi markets.Tokenization provides a secure, tamper-proof, and transparent record of asset transactions and ownership thanks to the utilization of the blockchain.
Technology Fractionalization represents the division of assets into shares. It is not dependent on a particular technology, although it is often facilitated by digital platforms, for example, in the case of real estate crowd funding. The utilization of blockchain technology allows real-time trading, which enhances liquidity and makes it easier for investors to sell, buy, and exchange digital assets.

What to look for while selecting the platform?

There are several things to consider when selecting a platform to buy tokenized or fractionalized art and real estate. Here are a few you should pay attention to.

To start with, look for a platform that has a robust security system and is compliant with the relevant authorities. Secondly, for platforms that leverage blockchain technology, ensure that you appraise the underlying blockchain network used. Consider factors like consensus mechanism, interoperability, scalability, and transaction speeds. 

Thirdly, consider the supported asset type. Different fractionalization and tokenization platforms may support a specific asset class. For instance, Ark7 supports fractional real estate investing, making it suitable for investors looking to diversify into real estate. Thus, consider the kind of asset you want to tokenize first before choosing a platform. 

Fourthly, the tokenization platform should have robust smart contract capabilities that can define the governance rules and automate the asset management process. 

Democratizing access to luxury investing

Tokenized and fractionalized real estate and art investing provide exciting opportunities to diversify into potentially lucrative asset classes that are otherwise difficult to access. Thanks to tokenization and fractionalization, anyone can invest in high-end art and property. Ensure to always DYOR, and regardless of the figure, never invest more than you can afford to lose.

Frequently asked questions

What is tokenized art?

What is real estate fractionalization?

What is fractional investing in real estate?

Is fractional ownership legal in India?

Is fractional ownership safe?

Are there risks associated with investing in tokenized assets?

What are the disadvantages of fractional ownership?

Can I sell my fractional ownership?

Can I trade tokenized art on NFT marketplaces?

Top crypto platforms in the US | December 2023



Alex Lielacher
Alex Lielacher is the founder & CEO of Rise Up Media, a content marketing agency that works with a range of bitcoin businesses. He first came across bitcoin in 2011 and has worked full-time in the cryptocurrency industry since 2016. Alex started his career in the banking industry in London, working in bond trading and sales. After a little over half a decade, he swapped his seat on the trading floor for a spot in cafés around the world, where he started his career as a freelance...