Kansas City Fed research last week also shows a slight decline in crypto payments, though I wonder if it is is statistically significant.

More details: www.linkedin.com/posts/lavays...

Credit to @amondry.bsky.social and @outliermedia.org for their exceptional on-ground investigative reporting, mentioned several times by the city complaint. Additional ♥️ for reporting with direct links to academic and legal sources.

Investors worldwide have limited visibility on property management. The multiple companies registered in Michigan and Delaware create complex jurisdictional situations. Additional questions have been raised on the effective ownership of the deeds.

Buyers receive fractionalised tokens, traded online with access to whitelisted DeFi services for exchange and lending. However, this model presents practical and legal challenges.

This situation questions the indirect tokenisation model. With indirect tokenisation, investors purchase financial instruments backed by real estate. In RealT's case, tokens are shares of dedicated companies that own properties in Detroit.

The complaint includes thousands of pages documenting property malfunctions and neglect. Tenants were unaware of their new fractionalised owners and have little recourse to solve their practical challenges.

The judge's decision follows mounting scrutiny over property conditions in Detroit. The city took legal action in June citing "unsanitary and unsafe living conditions" and squatter-occupied vacant properties.

As I am preparing follow-up work, feel free to provide remarks and reach me for more information.

The third, incomplete tokenization, offers flexibility, as long as parties are clear about the rights associated with the tokens.

These three cases have distinct legal implications. The first, direct tokenization, only changes operational aspects. The second, indirect tokenization, introduces risks common with securitization, particularly when exotic structures are used.

- The asset is securitized using a fund or an SPV and the security is issued as a token. These "asset-backed tokens" are the most common for startups tokenizing “Real World Assets” in volume.

- The token has limited legal value, serving as an interface, or conversely, as a settlement mechanism.

In a nutshell, we can distinguish three high-level cases:
- The token is the full embodiment of the asset, like a paper share or a register entry. The asset is native to this token form, when laws allow for it.