Nisus Finance Services Co Limited, a prominent name in investment management listed on the Bombay Stock Exchange (BSE), has made headlines by unveiling a significant partnership via its Dubai-based subsidiary. Nisus Finance Investment Consultancy FZCO (NiFCO Dubai) has entered into a Memorandum of Understanding (MoU) with Xchain Technologies FZCO, which operates under the brand name Toyow. This collaboration aims to tokenize real estate funds and assets valued at up to US$500 million, marking a pivotal moment for the integration of blockchain technology within the real estate sector.
The MoU outlines Nisus Finance’s intent to conduct a Security Token Offering (STO) for its real estate assets under management using Toyow’s advanced platform. This platform specializes in tokenizing Real World Assets (RWA) across multiple sectors. Toyow will provide comprehensive technical and operational support for the STO, which includes the development of smart contracts, blockchain technology integration, regulatory compliance, secure custody services, investor onboarding, and KYC/AML processing.
Aligning with Dubai’s Vision for Digital Asset Innovation
This collaboration resonates with the United Arab Emirates’ broader agenda to foster digital innovation, particularly in blockchain and tokenization. Just recently, the Dubai Land Department announced its partnership with the Virtual Assets Regulatory Authority (VARA), the Central Bank of the UAE, and the Dubai Future Foundation to initiate the region’s first tokenized real estate project. Industry forecasts suggest tokenized real estate transactions in Dubai could reach AED 60 billion by 2033, constituting nearly 7% of the entire market, and positioning Dubai as a world leader in asset tokenization.
The tokenized assets from Nisus will be accessible on Toyow’s platform, both for primary issuance and secondary trading. In addition, the platform will oversee liquidity mechanisms, marketing initiatives, and investor engagement and awareness campaigns. Holders of Toyow’s native token, $TTN, will have enhanced investment access to the tokenized real estate fund, broadening investment opportunities for a wider audience.
Creating a Scalable Ecosystem for Web3 Real Estate
The collaboration signifies Toyow’s commitment to building a robust institutional-grade infrastructure that adheres to regulatory standards across the UAE, the Dubai International Financial Centre (DIFC), and various other international jurisdictions. The platform aims to support the digitization, fractionalization, and monetization of high-value assets, extending beyond real estate to include art, precious metals, and alternative investments.
According to projections from Deloitte, tokenized private real estate funds are expected to grow to US$1 trillion by 2035, achieving a market penetration rate of approximately 8.5%. In the meantime, tokenized loans and securitizations could reach up to US$2.39 trillion. Overall, the global value of tokenized real estate may surge to US$4 trillion by 2035, up from less than US$0.3 trillion in 2024, marking a significant compounded annual growth rate of 27%.
Tokenization is gaining traction as an effective solution to traditional inefficiencies within the real estate market, enabling secure and fractional digital ownership. This approach enhances liquidity and opens up market participation for a broader base of retail investors. Additionally, it offers a unified platform for raising capital across various instruments, including debt, equity, and hybrid models.
Expanding Toyow’s Global Tokenisation Pipeline
This partnership with Nisus adds a substantial dimension to Toyow’s burgeoning tokenization portfolio, which has now eclipsed US$38 billion in asset value across diverse sectors and regions. Leaders from both companies highlighted that this initiative not only marks a transformative shift in their respective growth strategies but also signals a broader industry trend toward blockchain-enabled capital markets.
The collaboration harmonizes institutional investment expertise with state-of-the-art blockchain infrastructure, potentially redefining how capital is mobilized and managed within the real estate sector in the years to come.
