> For the complete documentation index, see [llms.txt](https://docs.surgexrp.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.surgexrp.com/what-is-real-estate-tokenization.md).

# What Is Real Estate Tokenization?

Get To Know About Tokenized Real Estate Assets

Real estate tokenization is the process of creating digital tokens on a blockchain that represent fractional ownership of real-world property assets.

Real estate assets cannot be tokenized directly on-chain as they exist in the physical world and are governed by legal title systems.\
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To bridge this gap, properties are placed inside legal wrapper entities and in SurgeXRP's case, **DAO LLCs** which effectively converts the ownership units of those entities into tokens on the blockchain.

Through this structure, each token you hold represents **co-ownership of the DAO LLC**, and by extension, fractional ownership of the underlying property asset it holds.\
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Token holders are entitled to their proportional share of rental income generated by the property, as well as any future appreciation events (e.g., a property sale or refinancing).

SurgeXRP employs the **DAO LLC model** for all tokenized real estate assets listed on the platform.

This model is specifically chosen for its legal clarity, investor protections, and compatibility with decentralized governance structures.

SurgeXRP utilizes the **XRP Blockchain (XRP Ledger)** to power the tokenization of real estate assets, enabling fast, low-cost, and scalable fractional ownership.