What is an SPV and why is it used in real estate tokenization?

An SPV (special-purpose vehicle) is a separate company created to hold one property or a small group of assets. Investors buy tokens linked to shares or rights in this SPV, not directly in the operating business of the developer.

Using an SPV keeps the asset ring-fenced: if the developer has other problems, the SPV and its building stay separate. It also makes it easier to track cash flows and run clear governance for token holders.