Real estate tokenization has reached an inflection point in 2025. With $18B+ in TVL across RWA protocols and projections of $4T in tokenized real estate by 2035, we're witnessing the transformation of property into programmable financial primitives. Here's how fractional property ownership works on-chain 🧵

Tokenized real estate merges on-chain logic with legal reality through 5 layers: • Blockchain settlement, • Compliant token standards (ERC-3643/7518), • Oracle systems, • SPV legal wrappers, • Orchestration layers for KYC/custody.

ERC-3643 changed the game. ONCHAINID links wallets to verified KYC, IdentityRegistry enforces whitelist-only transfers, and ModularCompliance enables programmable rules—holding periods, jurisdiction locks, transfer limits—all enforced at the contract level.

Real estate tokens depend on off-chain data (valuations, rental income, ownership status). Solution: Multi-source decentralized oracles with: • Median aggregation, • Reputation-weighted validation, • Fallback mechanisms to prevent data manipulation.

Security is critical. Smart contracts handling regulated securities face reentrancy, access control bypass, and compliance bypass risks. Defense requires formal verification, static analysis, multi-sig controls, and rigorous audits from RWA-specialized security firms.

Live ecosystems: • RealT (535+ properties, $101M), • Lofty (daily yield on Algorand), • Prypco (Dubai Land Department integration with real-time registry sync). Three models proving tokenized ownership works at scale today.