The trend of RWA tokenization is accelerating, but the heavy burden of American regulations remains

Tokenizing real-world assets (RWA) on the blockchain is becoming a current trend. Industry leaders like Barry Sternlicht, founder of Starwood Capital Group, see it as the future technology, but US regulatory hurdles are preventing this trend from advancing rapidly.

Barry Sternlicht and Starwood’s Preparations

Starwood Capital Group, managing over $125 billion in assets, has already completed preparations for RWA tokenization. During his speech at the World Liberty Forum, Sternlicht made it clear that his company is eager to bring real estate and similar assets onto the blockchain.

However, this ambitious plan faces a major obstacle—strict regulatory restrictions in the United States. That’s why Starwood is currently unable to move forward with this visionary project. Sternlicht indicated that clarity in the regulatory landscape is essential for progress.

Asset Tokenization Revolutionizing Liquidity and Investment

The main benefit of asset tokenization is that it makes traditionally illiquid assets—especially real estate—more accessible. This technology allows investors to buy fractional shares of different assets, which was previously impossible.

According to Sternlicht, this technology creates new funding models and opportunities for investors. He considers it as significant as artificial intelligence (AI), even stating that the development of RWA tokenization is still in an earlier stage than AI.

Market Growth Potential

Market data highlights the enormous potential of this trend. According to a Deloitte report, the global tokenized real estate market was approximately $300 billion in 2024. This figure is expected to grow dramatically over the next decade.

By 2035, the market could reach $4 trillion. This growth rate reflects a compound annual growth rate (CAGR) of 27%, which is extraordinary by any measure. These figures clearly show that RWA tokenization is not just a trend but a major economic transformation.

Need for Regulatory Clarity

For this trend to fully develop, US regulators must establish clear and supportive policies. Sternlicht and other industry leaders are urging regulators to create a framework that fully enables the transfer of assets onto the blockchain.

Currently, regulatory uncertainty remains the biggest obstacle. Once this uncertainty is addressed, explosive growth in RWA tokenization could occur. Companies like Starwood are ready—they are just waiting for regulatory approval.