Real estate is an industry ideally suited for tokenization, according to the CEO of Diamond Lake Minerals Inc (OTC:DLMI) Brian J. Esposito.
Diamond Lake’s digital asset investment offering is focused on security tokens and it is exploring how it can apply tokenization to new businesses, such as real estate.
“It’s an incredible time to look at real estate differently and it’s part of my ethos and the culture that we’re creating to build value for people and for our shareholders,” Esposito told Proactive in a recent interview.
Esposito said tokenizing real estate would give some investors the chance to buy into an asset class they would not be able to access otherwise with the issuance of fractional ownership of commercial real estate assets such as hotels or strip malls.
“That’s where you create the ability to offset volatility in the market and a collapse,” he added.
“In a regulated environment, you’d create a giant funnel of liquidity and access to capital that was not able to be accessed before because there was no such thing as blockchain technology.”
Esposito told Proactive that he believes security tokens are the right way to bring digital assets into investors’ portfolios.
“There’s been great wealth created by cryptocurrencies and other types of digital assets that don’t operate in a regulatory environment … but it scares me that there’s so much money out there that is not protected or regulated,” he said.
Quotes have been edited for style and clarity