Barry Sternlicht confirmed the potential of converting real estate into tokens as follows

Barry Silitch, senior executive at Starwood Capital Group, believes that the search for tokens of real assets is still in its early stages. Silitch points out that tokenization is developing at a faster pace than artificial intelligence in the real world. When discussing the current state of the real estate industry,

Regulatory hurdles hinder progress

Starwood Capital Group, which manages over $125 billion in assets, is preparing for a major transition. However, Silitch emphasizes that U.S. regulatory barriers have hindered this potential. “We are ready to move forward now,” he said during the World Liberty Forum in Palm Beach. “But the legal system does not allow our clients to transact in tokenized forms, which is unreasonable.”

The main issue lies in regulatory delays, causing the real estate industry to remain stuck in outdated processes, even as blockchain technology is ready for large-scale adoption.

Starwood and other leading companies are ahead of the curve

The idea of converting tangible assets like real estate or art into tradable digital units on the blockchain is not new. However, Propy has announced a $100 million expansion plan to build a network of real estate license management companies nationwide, aiming to improve industry operations.

In addition to Propy, Barry Silitch’s Starwood is exploring ways to integrate this technology at her level. With such a large volume of assets, token systems will open new opportunities for fundraising and access to previously illiquid markets.

A $4 trillion market awaiting tokenization by 2035

According to Deloitte’s report from last year, the value of real estate assets converted into tokens is expected to reach $4 trillion by 2035, a significant increase from less than $0.3 trillion in 2024.

The projected compound annual growth rate (CAGR) is 27%, reflecting the potential for a major industry transformation. Deloitte also notes that tokenization not only creates new markets and products but also helps real estate organizations overcome challenges related to efficiency, high management costs, and retail investor participation.

The transformative technology set to revolutionize the industry

Barry Silitch expresses optimism about the future of asset tokenization. “This technology is far better,” he affirms. “This is our future.”

He compares the development of this technology to the growth of artificial intelligence, stating that tokenization is still far from where AI currently stands. “This will be faster than AI in the real world,” Silitch says, calling it “the most exciting thing possible.”

He concludes by stating that asset tokenization is good for the world, but the world must also keep pace with regulatory improvements to unlock the full potential of this foundational technology.