Real Estate Tokenization with Blockchain Solution

Currently, Indonesia's Dana Investasi Real Estate (DIRE) market experiences regulatory challenges related to extensive, fragmented procedures, multiple Know Your Customer (KYC) verifications, limited transparency and auditability, privacy and data protection, and weak collaboration among real estate, finance, law, and digital assets. The objective of this research is to create and evaluate a blockchain-based system architecture to enable the regulated tokenization of DIRE. This study employs the Design Science Research methodology and constructs a hybrid blockchain research artifact integrating KYC and wallet whitelisting, off-chain identity and legal document repositories, smart contracts with controlled token lifecycle, on-chain auditability, and a regulated market. This proposal underwent validation with experts from real estate development, asset management, legal and notarial services, fintech infrastructure, and compliance, as well as professionals from digital asset services, blockchain development, and other areas. Results indicate that the proposed architecture offers visibility, privacy-preserving data segmentation, role separation, and controlled participation with traceable compliance and token lifecycle management. The authors do not presume that the proposed system will solve DIRE liquidity, taxation, and KYC fragmentation. However, the authors provide the first architecture-level design for compliance-focused tokenization of real-world assets in emerging markets, opening pathways for other design, security, platform, and regulatory work.