To begin, it is critical to comprehend what a real estate token represents. The real estate token is nothing more than a digital share. It is entitled to the same economic rights as any other share. A real estate token can represent collateralized debt ownership, an equity position in a legal business, a share of the deed, or any other type of real estate asset. Tokenization requires sponsors to take the necessary procedures to allow private or public trading of real estate tokens, or to provide investors the option of exchanging their shares for tokens of another organization that has taken those regulatory steps. Once the investor's stake is tokenized, it is digitally stored on a blockchain and may be traded on secondary markets.