Real estate billionaire Barry Sternlicht is ready to tokenize assets, but says U.S. regulation blocks it

Finance Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Real estate billionaire Barry Sternlicht is ready to tokenize assets, but says U.S. regulation blocks it The $125 billion real estate firm wants to offer blockchain-based tokens to clients but is stalled by regulation. By Helene Braun | Edited by Aoyon Ashraf Feb 18, 2026, 10:23 p.m. Make us preferred on Google (Craig Barritt/Getty Images) What to know : Barry Sternlicht, whose Starwood Capital manages more than $125 billion in assets, says the firm is ready to tokenize real-world assets but is stymied by U.S. regulatory barriers. Sternlicht argues that tokenizing assets like real estate on blockchains could open new ways to raise capital and give investors access to illiquid markets. Praising the technology as "the future," he likens tokenization’s development stage to an earlier stage than that of artificial intelligence and says the world needs to catch up. Billionaire real estate mogul Barry Sternlicht said his firm, Starwood Capital Group, which manages over $125 billion in assets, is ready to begin tokenizing real-world assets but can’t move forward due to regulatory barriers in the United States. “We want to do it right now and we’re ready,” Sternlicht said Wednesday at the World Liberty Forum in Palm Beach. “It’s ridiculous that our clients can’t do it in token,” he said, referring to transacting real-world assets — like real estate — using blockchain-based tokens. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . Tokenization refers to converting ownership of physical assets, like real estate or art, into blockchain-based tokens that can be traded. For firms like Starwood, it could offer a new way to raise capital or give investors access to previously illiquid markets. Putting real estate on the blockchain isn't a new idea, and some other firms are already moving forward on a small scale to make the massive market, which still relies heavily on manual processes, more efficient. One such firm is Propy, which laid out its plans last year for $100 million expansion to acquire mid-size property title firms across the U.S., aiming to streamline the industry processes. In fact, consulting giant Deloitte said in a report last year that $4 trillion of real estate will be tokenized by 2035, increasing from less than US$0.3 trillion in 2024. If that becomes reality, that's a 27% CAGR for tokenized real estate. "Tokenized real estate could not only pave the way for new markets and products, but also give real estate organizations an opportunity to overcome challenges related to operational inefficiency, high administrative costs charged to investors, and limited retail participation," Deloitte said. 'It's a fantastic thing' Sternlicht also seems to share the vision that tokenization can revolutionize the industry by praising the massive potential of the underlying technology. “The technology is superior,” he said. “This is the future. He went so far as to compare the current state of tokenization to artificial intelligence, saying it is far behind where AI is today. “This is even earlier in the physical world than AI is.” Sternlicht called tokenization “exciting as can be,” saying, “It’s a fantastic thing for the world, the world just has to catch up with it.” Tokenization More For You Zoomex: Precise Systems of Fairness and Transparency by Design By CoinDesk Jan 31, 2026 Commissioned by Zoomex Read full story More For You Kraken continues acquisition streak by buying token management firm Magna ahead of IPO push By Krisztian Sandor | Edited by Aoyon Ashraf 3 hours ago The deal adds token lifecycle infrastructure to Kraken’s growing product suite. What to know : Payward, Kraken’s parent company, has acquired token operations firm Magna. Magna is used by crypto teams to manage token vesting, claims and distributions. It serves 160 clients and had a peak total value locked of $60 billion on its platform last year. Kraken has made a string of acquisitions to expand and raised $800 million last year at a $20 billion valuation. Read full story Latest Crypto News Banking trade groups responsible for impasse on market structure bill, Brian Armstrong says 14 minutes ago Bitcoin sinks to $66,000, U.S. stocks lose steam as Fed minutes mention possible rate hike 1 hour ago Sam Altman's OpenAI unveils ‘EVMbench’ to test whether AI can keep crypto’s smart contracts safe 3 hours ago Kraken continues acquisition streak by buying token management firm Magna ahead of IPO push 3 hours ago The Protocol: Zora moves to Solana 4 hours ago Optimism's OP token falls after Base moves away from the network's 'OP stack' in major tech shift 4 hours ago Top Stories What happens on prediction platforms can steer traditional markets, NYSE chief says 5 hours ago Goldman Sachs' David Solomon says he owns 'very little' bitcoin but watching it closely 6 hours ago Bitcoin's plunge signals coming AI crisis, but massive Fed response will drive new record high: Arthur Hayes 7 hours ago Ethereum’s 50% staking milestone triggers backlash over 'misleading' supply data 5 hours ago American crypto holders are scared and confused about this year’s new IRS tax rules 9 hours ago Hyperliquid starts DeFi lobbying group with $29 million token backing 7 hours ago