Relli CEO Mor Milo on the gap between blockchain’s promise and what actually makes a real estate investment accessible.
Every few months, a new wave of enthusiasm sweeps through real estate: blockchain will fractionalize buildings, tokens will unlock liquidity, and anyone will be able to own a slice of a skyscraper. Mor Milo, co-founder and CEO of the commission-free marketplace Relli, has watched this cycle repeat, and his assessment is blunt.
Tokenization is not securitization
The central misunderstanding, Milo says, is treating a token as if it were an investment vehicle. “Just because you can tokenize, it doesn’t mean that you can securitize it,” he said. A token can represent equity in a deal, but unless the offering is registered with the SEC in a form that allows it to be sold to the public, the token changes nothing about who can legally invest.
“You can’t have the tokenization without the securitization,” Milo said. “You have to do both.”
Where the promise breaks down
In practice, he explains, a tokenized deal still sits on top of the same regulatory structures as any other. A Regulation D offering still limits participation to accredited investors with high minimums. To reach the everyday investor, a sponsor still needs a Regulation A offering or similar infrastructure, each of which is expensive and time-consuming to build. The token itself does not create liquidity or diversification.
Milo says sponsors regularly tell him they plan to tokenize their assets, and his first question is always the same: how does that actually help you reach the market? Often, he says, the underlying opportunity is unchanged, a large minimum investment into a fund of assets, now with a digital wrapper that looks innovative but does not expand access.
A measured view of crypto
Milo is not a blockchain skeptic by temperament. He holds a small position in Bitcoin and Ethereum as a hedge, but keeps his expectations grounded. “I do much better buying good companies for low prices,” he said. His concern is that for well over a decade, the technology’s biggest promises have consistently outrun its delivery.
What investors should watch instead
The takeaway for investors is to look past the packaging. The features that make a real estate investment accessible and sound have little to do with whether it lives on a blockchain, and everything to do with its legal structure, its sponsor, and its underlying economics. Until tokenization is paired with real securitization, Milo argues, it remains a technology in search of the infrastructure that would make it matter.
About Relli: Relli is a commission-free, direct-to-sponsor private real estate marketplace connecting accredited investors with vetted commercial real estate syndication opportunities. Positioned as “The Stock Market of Real Estate,” Relli was co-founded by Mor Milo (CEO) and Ross Iannarelli (COO). Learn more at relli.co.
Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. All investments carry risk, including the possible loss of principal. Neither the publication nor the author can be held responsible for decisions made based on this content.
