Starwood's $125B Real Estate Empire Ready for Tokenization
Barry Sternlicht, the billionaire leader of Starwood Capital Group, declared his firm is fully prepared to tokenize real-world assets from its portfolio of over $125 billion. Speaking on February 18, 2026, at the World Liberty Forum in Palm Beach, Sternlicht expressed frustration with the current U.S. regulatory landscape, which he identified as the primary obstacle to innovation. He argued that the inability to transact using blockchain-based tokens limits opportunities for both the firm and its clients.
We want to do it right now and we’re ready. It’s ridiculous that our clients can’t do it in token.
— Barry Sternlicht, CEO, Starwood Capital Group
Tokenized Real Estate Tipped for $4 Trillion Valuation by 2035
Tokenization is the process of converting ownership rights of physical assets, such as commercial real estate, into digital tokens on a blockchain. This financial technology promises to unlock liquidity in traditionally illiquid markets, lower administrative costs, and broaden access for retail investors. While Starwood's entry is stalled, the market potential is drawing significant institutional attention. A recent report from Deloitte projects the tokenized real estate market will grow from less than $0.3 trillion in 2024 to $4 trillion by 2035, representing a compound annual growth rate (CAGR) of 27%.
Sternlicht Praises Tokenization as 'The Future'
Despite the regulatory delays, Sternlicht remains a vocal proponent of the underlying technology, describing it as fundamentally superior for asset management. He positioned tokenization as an innovation with transformative potential, comparing its current development stage as even earlier than that of artificial intelligence. By championing the technology, Sternlicht is signaling to regulators and the market that major institutional players are prepared to deploy significant capital once clear rules are established.
It’s a fantastic thing for the world, the world just has to catch up with it.
— Barry Sternlicht, CEO, Starwood Capital Group
