Tokenized real estate platforms rely on wallets where investors hold both property tokens and stablecoins like USDC. These wallets can be non-custodial (user controls the private keys) or custodial (managed by the platform). Non-custodial wallets give investors full control – but also full responsibility for key security. For example, crypto wallets (MetaMask, Trust Wallet or hardware wallets) can store ERC‑20 property tokens and USDC. Platforms often integrate on‑chain identity checks so that only KYC‑verified wallets can receive tokens (i.e. wallet whitelisting via smart contracts). To fund these wallets, investors typically buy a stablecoin such as USDC (or convert fiat to USDC) and transfer it in. For instance, Lofty AI's marketplace requires all trades in USD Coin: if a buy order is submitted in another currency, it is converted to USDC at the current rate, and the purchase occurs on-chain. Any unspent USDC is returned to the investor's Lofty Wallet.

• Wallet Types: Custodial wallets (hosted by the platform) simplify use but require trust in the provider; non-custodial wallets give control to the investor but mean managing keys oneself (losing a key can mean losing access to tokens). Many projects mitigate this with wallet recovery services or multi-sig setups.
• USDC as Funding: Real estate token sales often require USDC. Investors first acquire USDC (via exchanges or on-ramps) and fund their wallet with it. Some platforms even accept credit cards or bank transfers and convert to USDC behind the scenes, but the on-chain transaction uses the stablecoin.
• KYC & Whitelisting: Smart contracts enforce that only approved wallets can receive or trade tokens. Platforms whitelist wallet addresses after identity checks. For example, before tokens are issued, a contract may verify a wallet is on the whitelist (often managed off-chain by the platform's KYC provider). This ensures compliance with securities and AML laws by binding real identities to wallet addresses.
• Governance & Control: Wallets may support additional features like multi-signature approvals (common for institutional investors or large property pools). Some systems even allow investors to vote on property decisions via their wallet. Overall, dedicated crypto wallets mean investors can trade and hold fractional property tokens globally, with instant settlement – but this requires robust key management and user education.

Proper wallet design delivers business value: it lowers infrastructure costs by using existing crypto wallets and smart contracts, and it expands the investor pool (anyone with a USDC wallet globally). At the same time, wallets must balance convenience with regulatory safeguards (identity verification and safe custody) to build trust and meet compliance requirements.