How Digital Assets Transform Real Estate in 2024

In 2024, real estate agencies stand at a distinctive crossroads, with a unique opportunity to boost sales by integrating digital assets into their balance sheets. We believe this is particularly relevant for agencies focusing on high-net-worth individuals (HNWIs), a demographic routinely seeking diverse investment avenues and wealth management strategies. 

Why HNWIs Choose Digital Assets for Real Estate Transactions

In real estate, digital assets offer investors and buyers a more sophisticated purchasing option for property transactions. Whether purchasing opulent residential homes or commercial properties, buying with digital assets improves the process by increasing efficiency and privacy.

By comparison, traditional real estate dealings often involve lengthy paperwork and the disclosure of extensive personal information. Cryptoassets, however, empower buyers by allowing a certain level of anonymity, safeguarding financial privacy. Moreover, integrating digital assets into real estate transactions significantly reduces the risk of fraud and elevates overall security. This is because the decentralised structure of blockchain involves verification from multiple participants, mitigating the risk of fraud and upholding the overall integrity of the process.

HNWIs choose cryptoassets for real estate transactions also for other reasons. Traditionally dominated by real estate holdings and conventional financial instruments, digital assets can provide a new avenue for diversification. With their unique market dynamics, cryptoassets can act as a hedge against traditional market fluctuations, adding a layer of risk management to the overall investment strategy.

They also transcend geographical boundaries, allowing real estate agencies to cater to HNWIs who often engage in international transactions. Accepting digital assets allows for faster cross-border transactions, eliminating the need for intermediaries. The accessibility and ease of these transactions can enhance the client experience and attract a global pool of high-net-worth clientele.

Real estate holdings typically involve illiquid assets, making it challenging for agencies and HNWIs to convert their investments into cash quickly. The integration of digital assets introduces an element of liquidity to the balance sheet. With their 24/7 trading availability, cryptoassets provide a faster and more flexible means of converting assets into cash, offering improved financial agility.

Tokenisation enables the fragmentation of real estate assets into digital tokens, each representing a fraction of ownership in the property. Investors can acquire these tokens, granting them a proportional stake in the property's value and potential rental earnings. This process enhances liquidity, as the tokens can be readily bought, sold, and traded on blockchain platforms, fostering a more accessible and adaptable real estate investment market.

Why More Real Estate Agencies are Accepting Digital Assets as Payment in 2024

In 2023, the global population of digital currency holders exceeded 420 million, and the United States emerged as the global cryptoasset market capitalisation leader. Real estate agencies understand that they can tap into new business opportunities by accepting digital assets as a form of payment from high-net-worth individuals.

Real estate agencies open the door to a broader clientele by accepting digital assets. High-net-worth individuals who have invested in digital currencies will likely be attracted to agencies that align with their financial preferences. This inclusion can significantly enhance the agency's market presence and attract clients seeking to transact in digital assets.

Digital asset transactions typically involve lower fees than traditional banking and payment systems. Real estate agencies can benefit from reduced transaction costs, especially in international dealings. Additionally, blockchain technology facilitates the efficiency of cryptoasset transactions, resulting in faster processing times and streamlined execution, which will save on operational costs.

XEROF's Third-Party Settlement Feature

XEROF, being a regulated entity and maintaining strategic partnerships with leading Swiss banks, is well-prepared to facilitate high-value real estate transactions.

Our capability to settle transactions from digital currency to fiat into a third-party account simplifies the process for all parties, enabling users to easily acquire property with cryptoassets directly through our platform while closely monitoring the real estate transaction progress. In addition, funds exchanged from digital assets to fiat are securely held in segregated wallets, ensuring the safety of transactions.

We incorporate advanced tax optimisation expertise into our third-party settlement feature. This allows real estate agencies to manage tax implications within a precision-regulated framework. In addition, it empowers buyers to optimise tax positions during transitions between digital assets and real estate assets. 

Thanks to our on-ramp/off-ramp solutions, users can also expect substantial cost savings

Global Opportunities: Tailored Solutions for Real Estate Acquisitions 

If you want to discuss tailored solutions for international real estate acquisitions or wish to learn more about XEROF's third-party settlement feature, feel free to contact us to arrange a meeting.

About XEROF

XEROF is a Swiss-licensed Crypto Gateway that offers exchange services for customers who possess crypto wallets and want to use them as fiat currency to purchase real estate properties and luxury goods.

Learn more about XEROF