Real Estate Security Tokens Steadily Gain Market Share

Real estate security tokens are steadily gaining popularity — comprising 14.5% of total trade in tokenized securities.

The nascent real estate security token, or REST, sector experienced consistent growth in Q1 2020.

Three new properties were also listed on RealT during March — doubling monthly real estate token trade.

RESTs now represent nearly half of active security token markets, and 15% of total volume. 

Tokenized real estate quietly garners liquidity

During January, tokens representing fractionalized ownership in three properties in Detroit, Michigan produced $19,950 in monthly volume. The tokens represent fractionalized ownership in rental incomes generated by the property.

Tokens for a home on Fullerton St. represented more than half of trade with $11,150 in volume. A property on Marlowe St. also saw $7,057 in tokenized trade, followed by an Audubon St. rental that produced $1,743. Combined, the three properties represented 10.3% of total security token trade.

February saw the three properties’ pooled volume increase 25% to $24,393, with Fullerton St. tokens seeing a 20% hike in activity. During the same period, Audubon’s monthly volume doubled. 

However, a 70% increase in volume across all tokenized securities resulted in real estate tokens representing just 7.5% of the $329,000 digital securities market by the end of Feb.

New REST listing doubles market share in March

In March, the addition of three active REST markets on RealT saw monthly security token trade almost double to $47,584. 

Newly active markets for properties on the streets of Applione, Leisure, and Patton generated $24,590, while Audubon, Marlowe, and Fullerton produced $22,994.

With overall tokenized security activity plateauing in March, RESTs’ share of security token trade spiked to 14.5%.

4.37 million security tokens to flood tZERO

Overstock is seeking to drive greater activity in the tokenized security markets, announcing that it will airdrop 4.37 million ‘OSTKO’ security tokens to OSTK shareholders at a 1:10 ratio.

The tokens will exclusively trade on overstock’s tZERO alternative trading system — which currently hosts $8,700 in average daily trade.