Goldman Sachs is hopping on the tokenized real estate fund train.
The investment bank tapped fund servicing company Apex Group and digital asset exchange company Archax to tokenize real estate, according to a release.
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Real-world asset tokenization converts ownership of a tangible asset, like real estate, into digital tokens on a blockchain.
In this fund, shares will be tokenized through Goldman Sachs' blockchain platform, GS DAP, which the company spun out from its digital assets business in 2024. The structure will utilize blockchain-native issuance and will focus on operational efficiency and transparency.
“Issuing blockchain native fund units on GS DAP enables investment in real estate assets with precision while unlocking more seamless transferability in the future,” Goldman Sachs Global Head of Digital Assets Mathew McDermott said in the release.
London-based Archax will serve as the custodian, a licensed financial institution that mitigates risks of loss or theft and ensures regulatory compliance.
Apex Group is providing alternative investment fund manager services through third-party management company Fundrock LIS and fund administration and depositary services through Apex Fund Services Luxembourg.
The companies also tapped Ownera to serve as the liaison between participants and distribution channels and real estate investment firm LRC Group to serve as the fund's manager.
RWA tokenization has become more and more popular as developers turn to blockchain-based investment vehicles for new pools of capital, though concerns have arisen over the model attracting dishonesty.
The Deloitte Center for Financial Services forecast that $4T of real estate would be tokenized by 2035, up from $300B in 2024.
Bisnow reporter Bianca Barragán contributed to this report.
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