- Starwood Capital wants to launch tokenized real estate, but US regulation is blocking progress.
- Billionaire Barry Sternlicht calls tokenization the future and highlights its efficiency benefits.
- Deloitte projects $4T in real estate will be tokenized by 2035, up from $0.3T in 2024.
Starwood’s Tokenization Ambition
Starwood Capital Group, managing more than $125B in assets, is ready to offer tokenized real estate investment options to clients, reports CoinDesk. CEO Barry Sternlicht says regulatory hurdles in the US are the primary obstacle, even though the technology is in place and ready for use.
Why Tokenized Real Estate Matters
Tokenization enables converting real estate ownership into blockchain-based tokens, creating new ways to raise capital and making previously illiquid assets accessible to a broader range of investors. Proponents argue this can streamline processes, reduce costs, and expand participation. The push also aligns with broader digital adoption trends across commercial real estate, where blockchain-based transactions are beginning to gain traction.
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Market Outlook and Industry Momentum
Consulting firm Deloitte predicts tokenized real estate could reach $4T globally by 2035, significantly up from less than $0.3T in 2024 and representing a 27% CAGR. Industry players like Propy are already advancing tokenized transactions, while Dubai pursues an ambitious $16B tokenization initiative.
What’s Next
Sector leaders, including Sternlicht, see tokenization as transformative for the real estate industry, but regulatory alignment will be crucial for large-scale adoption in the US. Other markets, such as Dubai, are moving forward, hinting at the potential if US policies evolve.
