We are excited to add the article down below piece to our Real Estate series in collaboration with Magma Real Estate and Blue222, as their field expertise is an essential piece to a Real Estate tokenization stack.

“Tokenizing an asset” doesn’t mean it’s ready for liquidity

In today’s narrative, real estate tokenization is often reduced to its financial layer: “fractional access to capital,” “liquidity for traditionally illiquid assets,” or “opening up investment opportunities.” But one fundamental layer is still largely overlooked: the reliability of the data tied to the asset, and a clear understanding of actual ownership, which starts by asking the right question: what are we actually tokenizing? (read our article about the legal wrapping).

Without these elements, tokens might represent exposure to risk rather than a secure claim on an asset. Investors may be misled into thinking they are buying into something solid, when in fact the foundations are uncertain.

This is where the distinction between ownership tokenization and financial tokenization becomes critical:

• Ownership Tokenization: Tokenizing legally verified and enforceable ownership rights that reflect the actual, current state of the property.
• Financial Tokenization: Creating a fractional financial product, often disconnected from actual property titles and grounded more in economic exposure than legal control.

The RealT case in Detroit in 2024 brought this into sharp focus. Properties were tokenized without proper title verification, leading to halted rent flows and frozen investor assets. It showed how easily the promise of decentralization can collapse without robust on-chain and off-chain alignment.

Building the right foundation for real tokenization

To become truly transformative, tokenization needs three things: auditable data, verifiable property conditions, and governable on-chain infrastructure. This is where Magma, Blue222, and Evergon form a complementary stack:

Magma, the base data layer

Magma offers a Digital Twin Token (DTT®) that holds all technical, legal, and ownership details of a property. This digital asset of the building ensures traceability and real-time updates and is shared with all stakeholders, who can upload and validate data. The DTT® also incorporates the Magma Index: a measure of the building’s digitization and data completeness, providing a clear and actionable overview of its operational and sustainability performance.

“We believe real estate data should be executable. If you can’t trace, verify, and act on the information tied to an asset, then you’re not tokenizing it, you’re just decorating it.” Matthieu Merchadou, CEO, Magma

Blue222, the due diligence layer

Blue222 provides a marketplace platform that streamlines due diligence processes. This includes real estate inspections, environmental assessments or surveys. Their vendor network allows your to decreasing time spent on due diligence. Think of Blue222 as the digital command center ensuring this critical part of real estate transaction gets done right.

Due diligence is critical to real estate transactions, yet the processes are manual and time-consuming. Blue222 is solving this and, in turn, modernizing due diligence for the entire industry.” Eric Craig, CEO, Blue222

Data standards mature and platforms like Magma and Blue222 push for industry-wide alignment and adoption. The future of real estate investing isn’t just digital, it’s dynamic and filterable.

Evergon, the financial tokenization layer

Evergon provides the infrastructure layer for token issuance, compliance, and secondary trading. Built on the ERC-7208 token standard (from Nexera), it embeds compliance rules directly into the token logic.

“Evergon ensures that the token layer itself is governable and enforceable. Our no-code, whitelabel platform lets issuers go to market in minutes, with integrated compliance, KYC, and transfer logic built directly into the ERC-7208 token standard. We turn real estate assets into programmable, ready-to-trade instruments from day one.” Christopher Thepot, Head of Product, Evergon Labs

ERC-7208 allows programmable rules such as whitelist gating, transfer conditions, and jurisdiction-based controls. Think of it like a programmable access pass for real estate ownership that works globally and securely.

In the long term, this is the basis for an entirely new asset class, one that behaves more like a programmable interface than a legal document (what we call the Internet of Assets).

Granularity of information unlocks personalization

One of the most overlooked advantages of tokenization is portfolio precision. With rich, verified data, investors can build real estate strategies as granular as ETFs:

• Investor A is a logistics REIT looking for buildings less than 5 years old, with energy scores of A or B, near major highways.
• Investor B is a family office targeting residential rental units within 3 km of university zones, with historical occupancy above 90 percent.
• Investor C is a green fund seeking assets with ESG certifications, recent renovations, and digital building management systems.

But this level of customization is only possible if the underlying data is structured, validated, and accessible. Today, most tokenized assets don’t meet those criteria.

This will change as data standards mature and platforms like Magma and Blue222 push for industry-wide alignment. The future of real estate investing isn’t just digital, it’s dynamic and filterable.

Completing the stack with Evergon and ERC-7208

While Magma and Blue222 address the data and verification layers, Evergon completes the stack with a programmable, compliant, and modular framework. At the heart of Evergon’s architecture is ERC-7208, a next-gen token standard designed for regulated real-world assets.

ERC-7208 allows:

• Pre-defined transfer rules such as KYC/KYB or geography-based restrictions
• Modular permissions like role-based controls for issuers, investors, and custodians
• Real-time compliance enforcement
• Interoperability between assets (even if different standards)
• Omni-chain capability

Evergon turns a real estate token from a static PDF into a smart asset that knows what it’s allowed to do.

These three layers: auditable data (Magma), verified conditions (Blue222), and programmable ownership (Evergon) form a stack that brings real estate into the age of digital capital markets.

What still needs to be built

Despite the progress, the real estate tokenization ecosystem is still in its early stages. Several foundational elements remain incomplete:

• Standardized taxonomies for asset data across jurisdictions
• Reliable oracles to validate real-world events like inspections and leases
• Legal frameworks that clearly define tokenized rights
• Interoperable tooling to navigate fragmented regulatory environments

It’s increasingly unlikely that a single global standard will emerge. Regulatory, cultural, and legal divergences will persist. Instead, the opportunity lies in developing flexible, modular infrastructure that can adapt to local realities while remaining interoperable across platforms.

Too often, projects tokenize financial exposure without addressing the enforceability of ownership. Without alignment across the legal, technical, and operational layers, tokenization risks becoming cosmetic rather than transformative.

The path forward isn’t uniformity, but composability: infrastructure that can translate trust, rights, and compliance across jurisdictions, even when rules differ. That’s the only way assets will truly move between systems and borders.

The only way forward

The difference between ownership tokenization and financial tokenization is not just semantic and it starts with knowing where the legal enforceability lives (a key distinction many still miss).

“Tokenizing an asset without structured data is like selling a house without a door or a key.”

To unlock the full potential of tokenized real estate:

• You need auditable truth (Magma)
• You need validated conditions (Blue222)
• You need programmable compliance (Evergon)

That’s the real estate tokenization stack. And it’s not a dream. It’s happening.

Now is the time to build.