Tokenization Layer
In today’s real estate RWA market, tokenization faces significant bottlenecks:
High barriers to entry — The process involves contract development, asset audits, issuance, and distribution, making it inaccessible for individual owners and small institutions.
Lack of standards — Projects vary widely in asset definitions, technical design, cash flow accounting, disclosure frequency, and compliance, resulting in non-comparable assets, weak composability, and illiquid secondary markets.
Design Principles
NeoMason’s tokenization layer is designed to lower entry barriers and make property tokenization accessible to all compliant owners. Five guiding principles define the framework:
Legal 1:1 Mapping — On-chain certificates must strictly correspond to off-chain assets.
Technical Product Fit — Tokens must be adaptable to real estate management scenarios.
Compliance-by-Design — KYC/AML, investor suitability, and jurisdictional restrictions are embedded at issuance.
Verifiable Disclosure — Title deeds, leases, and valuation updates are uploaded on-chain as verifiable proof packages.
Mass-Market Enablement — Transform tokenization from an institutional-only capability into a service accessible to any compliant property owner.
Open Real Estate Tokenization System
NeoMason offers a standardized toolchain that enables seamless mapping of properties into capital market instruments:
Document Submission — Title deeds, lease agreements, compliance documents.
Identity & Due Diligence — Owner KYC/AML and property verification.
Asset Registration & Contract Deployment — Unique asset ID creation with on-chain metadata and proof package.
Token Issuance — Parent and child tokens minted under standardized protocol.
Custody Integration — Tokenized assets connect to NeoMason’s on-chain rental custody system.
Ongoing Disclosure — Regular updates of lease status, valuations, and audits published on-chain.
This turns property tokenization from a complex engineering process into a low-barrier service.
Dual-Token Model
NeoMason employs a parent-child dual-token architecture to balance legal enforceability with market liquidity.
Parent Token ($A_1122_propertyID)
ERC-1122
Digital asset certificate (lifecycle & compliance)
1 per property
Full lifecycle management, legal enforceability, event recording, regulator/custodian interfaces
Child Token ($A_20_propertyID)
ERC-20
Fractional interest (yield & liquidity)
1,000,000 per property
Divisible, liquid, composable; supports trading, transfers, collateralization, and automated yield distribution
Token Relationship
Each parent token uniquely maps to 1 property.
Each parent token corresponds to a fixed issuance of 1,000,000 child tokens.
Parent token = legal anchor; Child token = market liquidity vehicle.
Combined, the dual structure ensures legal robustness + financial flexibility.
Security & Audit
Smart Contract Audit — Formal verification and multi-party reviews of core modules.
Operational Audit — Regular third-party audits of rental flows, valuations, and disclosures.
Disaster Recovery — Redundant registries and legal fallback mechanisms, enabling rollbacks in extreme scenarios.
User Journey
For Property Owners:
Upload documents → 2. KYC verification → 3. Sign tokenization agreement →
Mint $A_1122 (parent) → 5. Split into $A_20 (child tokens) → 6. Ongoing disclosure & yield distribution.
For Investors:
Review disclosures → 2. Pass whitelist/KYC → 3. Subscribe to $A_20 →
Receive rental distributions → 5. Trade or exit via compliant secondary markets.
On-chain Custody of Rental Income: Direct Application of Tokenization
Rental income is the core cash flow of real estate. Traditional models suffer from opacity, delays, and counterparty risk. Tokenization enables direct linkage of rental income with tokenized interests.
Mechanism:
Rent flows into NeoMason’s rental custody protocol.
Funds are automatically matched to asset tokens.
Proceeds distributed pro rata based on token snapshots.
All distributions immutably recorded on-chain.
Value:
Investors enjoy instant, transparent, verifiable cash flows.
Property owners gain on-chain proof of stable income, enhancing refinancing capacity and valuation.
This is the first real-world application of tokenization, marking the shift from static ownership to dynamic financialization.
Strategic Significance of Real Estate Tokenization
The tokenization layer generates three enduring benefits:
On-chain Credit History — Property titles, leases, and cash flows become verifiable, creating cross-border credit credentials.
Asset Upgrade — Properties evolve from local, fixed assets to global, liquid capital, enabling fragmentation, trading, collateralization, and portfolio optimization.
Enhanced Transparency — Immutable disclosure reduces uncertainty in cross-border investment.
Through its dual-token architecture + on-chain rental custody, NeoMason transforms non-standard properties into standardized, liquid, programmable capital instruments. This is the keystone layer of the NeoMason architecture, bridging real estate custody with abstraction ($REY issuance) and financial applications.
Executive Takeaway
NeoMason’s tokenization layer standardizes real estate into auditable, tradable, and composable digital instruments. By combining ERC-1122 parent tokens for legal enforceability with ERC-20 child tokens for liquidity, NeoMason creates the foundation for transparent, low-barrier, and scalable Real Estate Finance 3.0.
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