Lumia Foundation and Sen Group have announced a groundbreaking $1B+ framework agreement to tokenise real estate properties, marking a transformative moment for the industry.
The partnership marks the first-ever full-scale tokenisation of an entire real estate property. As part of this initiative, the first fully tokenised property will be unveiled during a press conference at the World Economic Forum in Davos on January 23, where Lumia will showcase its advanced tokenisation technology via the Lumia HUB.
The popularity of Real World Assets (RWA) as an investment class has grown exponentially over the past year. In April 2024, BlackRock, the world’s largest investment fund, announced its entry into the RWA market. Experts predict the RWA market will expand to $10 trillion by 2030.
It took less than 6 months for the Lumia Foundation and Real Estate giant Sen Group to finalise the legal and regulatory framework for this landmark deal, ensuring compliance with Turkish legislation.
Investor Excitement and Market Potential
“We’ve seen significant investor interest even during the preparatory phase of the tokenisation. The prospect of completing the first-ever full-scale tokenisation of an entire property is truly inspiring. The opportunities for RWA in real estate this year are phenomenal,” noted Kal Ali of Lumia Foundation.
Detailed information about the tokenisation will be presented at a press conference by Lumia Foundation on January 23 during the World Economic Forum in Davos. The upcoming Davos presentation will highlight how tokenised properties integrate seamlessly into DeFi ecosystems, enabling trading, lending, borrowing, and staking. With investor interest already mounting, this agreement signals the beginning of a new era in real estate, offering unparalleled opportunities for small and large investors alike.
Empowering Small Investors
The tokenisation will make high-value real estate investments accessible to smaller private investors. Traditionally, investing in Turkish real estate required substantial capital, often supplemented by loans. However, with tokenisation, ownership of the real estate will be open to anyone, without a minimum investment amount.
This innovation is expected to bring significant capital into the real estate market, contributing to the development of the Turkish economy. This asset-tokenisation partnership is a critical milestone for Turkey on the way to become the dominant market for crypto adoption.
Expanding the Ecosystem: A Vision for the Future
Lumia is not just tokenising real estate; it is building a comprehensive ecosystem that integrates Real World Assets (RWA) with cutting-edge Web3 technology. This ambitious vision includes more than 20 upcoming projects, creating unprecedented opportunities for the crypto community to engage with tangible, high-value investments.
“Lumia is focusing on the perfect combination of real-world business and Web3 technology. By merging large-scale RWA initiatives, such as this groundbreaking real estate project, within its massive incoming ecosystem of 20+ projects, Lumia is poised to offer the crypto community unprecedented opportunities, including exclusive access to assets and innovative experiences,” said Kal Ali, co-founder of Lumia Foundation.
This ecosystem-driven approach highlights Lumia’s commitment to innovation and its mission to bridge traditional finance with blockchain technology, paving the way for a more inclusive and decentralised financial future.
