Tokenisation and Real Estate: A regulated vision for the future
Crypto Revolution
Sebaga Manyeula is a recognised Key Opinion Leader in Africa’s fintech and digital assets space.
Image: Supplied
THE South African property sector has long been a symbol of generational wealth, but access remains unequal, processes are cumbersome, and liquidity is scarce.
Enter real estate tokenisation: a disruptive yet regulated solution that could redefine how property is bought, sold, and owned in our economy.
Tokenisation is the process of converting physical assets — like a house, a mall, or a piece of land — into digital tokens on a blockchain. These tokens represent fractional ownership, enabling a broader pool of investors to participate in the real estate market without the traditional barriers of high capital requirements or long transactional timelines.
In a tokenised real estate model, property ownership is digitised and issued as tokens on a distributed ledger. Investors can purchase these tokens using fiat or crypto, often through a regulated platform that handles everything from compliance to custody.
These tokens can offer exposure to rental yields, capital appreciation, or governance rights—depending on how they are structured.
But tokenisation is not just a technical feat, it’s a regulatory challenge.
Tokenisation opens doors for South Africans who have historically been excluded from property ownership. For as little as a few hundred rand, a young professional or an entrepreneur could invest in a fraction of a commercial asset in Sandton, a housing development in Cape Town, or even agricultural land in Limpopo.
For developers, it offers a new source of capital. For the broader market, it enhances liquidity and transparency.
But innovation without regulation is a risk, not a revolution.
South Africa has the chance to lead Africa in the tokenisation of real estate — but only if the ecosystem is built responsibly, with the Financial Services Conduct Authority's (FSCA’s) principles of fairness, transparency, and consumer protection at its core.
As a licensed Key Individual in the crypto space, I encourage market participants to work with regulators rather than around them. Tokenisation is not a shortcut; it’s a strategic path forward for a more inclusive and innovative property market.
And that future is already knocking at the door.
* Sebaga Manyeula is a recognised Key Opinion Leader in Africa’s fintech and digital assets space. A passionate advocate for financial inclusion, she is also the founding patron of the Give to Live Foundation, which supports abused women and children across Africa.
** The views expressed here do not reflect those of the Sunday Independent, IOL, or Independent Media.