KPMG executive predicts that Institutional DeFi players will tokenize commercial real estate

In the future, institutional investors are expected to invest in blockchain-tokenized shares of valuable commercial real estate, according to Kunal Bhasin, a digital asset co-lead at KPMG Canada.
Bhasin mentioned at the Toronto Collision Conference that tokenization has the potential to revolutionize the ownership of large commercial properties, which have traditionally been limited to wealthy real estate and pension fund managers.
The technology could open doors for institutional investors, such as family offices, to acquire a portion of prominent buildings like Toronto’s Eaton Center.
“Tokenization of commercial real estate has the capability to make this a reality,” Bhasin stated, forecasting it to become one of the most significant use cases for institutions in the crypto industry.
While discussing the topic with Cointelegraph, Bhasin highlighted that many “institutional DeFi” participants prefer to operate within a more controlled environment and emphasized the importance of conducting know-your-client checks.
Although tokenized real estate is gradually gaining traction, there have been limited success stories. For instance, Bitfinex Securities managed to raise only $342,000 out of its $6.25 million target for a tokenized asset investment in a Hampton by Hilton hotel in El Salvador.
Bhasin also anticipated a bullish trend in tokenized Treasurys and money market funds, citing the success of the BlackRock USD Institutional Digital Liquidity Fund, which has amassed $462.7 million since its launch in March.
Despite concerns about reputational risks, Bhasin noted a positive shift in attitudes among asset management firms and banks towards the crypto space. He mentioned that KPMG utilizes blockchain analytics technology from Chainalysis to detect potential illicit activities associated with its client base.
Bhasin emphasized the importance of adopting necessary infrastructure and best practices to identify and prevent fraudulent activities, suggesting that soon, not being involved in crypto and digital assets could pose a risk to one’s career.
In conclusion, Bhasin believes that the future holds great potential for institutional investors to enter the blockchain and tokenized assets space, as long as they are equipped with the right tools and protocols to navigate the evolving landscape.