Billionaire Sternlicht Says US Regulations Blocking Starwood's Real Estate Tokenization Plans

Starwood Capital Group, with $125 billion in assets, is ready to tokenize real estate but faces regulatory hurdles in the US.

Published on Feb. 23, 2026

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Billionaire Barry Sternlicht, CEO of Starwood Capital Group, says his firm is poised to embrace real estate tokenization but is unable to do so due to current US regulations. Tokenization involves converting ownership rights of physical assets like properties into digital tokens on a blockchain, which aims to unlock new investment avenues and streamline complex real estate transactions. Deloitte projects $4 trillion worth of real estate could be tokenized by 2035, but Sternlicht likened the current stage of tokenization to the early days of AI, emphasizing the need for regulatory adaptation.

Why it matters

Real estate tokenization has the potential to significantly transform the industry by increasing liquidity, reducing costs, expanding accessibility to investors, and providing new capital raising channels for firms like Starwood. However, the lack of regulatory clarity in the US is currently stifling innovation in this space, putting the country behind other jurisdictions that are progressing with tokenization initiatives.

The details

Starwood Capital Group, which manages over $125 billion in assets, is ready to tokenize its real estate holdings but is unable to do so due to current US regulations. CEO Barry Sternlicht recently voiced his frustration at the World Liberty Forum in Palm Beach, stating that his firm is poised to embrace this technology but is being held back by the regulatory environment. Tokenization involves converting ownership rights of physical assets like properties into digital tokens on a blockchain, which aims to unlock new investment avenues and streamline complex real estate transactions. Deloitte projects that $4 trillion worth of real estate could be tokenized by 2035, representing a compound annual growth rate of 27% for tokenized real estate. However, Sternlicht likened the current stage of tokenization to the early days of AI, emphasizing the need for regulatory adaptation to enable widespread adoption.

  • Starwood Capital Group manages over $125 billion in assets as of 2026.
  • Sternlicht voiced his frustration at the World Liberty Forum in Palm Beach in 2026.

The players

Barry Sternlicht

The CEO of Starwood Capital Group, a real estate investment firm managing over $125 billion in assets.

Starwood Capital Group

A real estate investment firm managing over $125 billion in assets and poised to embrace real estate tokenization, but facing regulatory hurdles in the US.

Deloitte

A consulting firm that projects $4 trillion worth of real estate could be tokenized by 2035, representing a significant growth opportunity.

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What they’re saying

“It's a fantastic thing for the world, the world just has to catch up with it.”

— Barry Sternlicht, CEO, Starwood Capital Group (World Liberty Forum)

What’s next

Regulatory developments in the US will be crucial for the future of real estate tokenization, as firms like Starwood Capital Group are eager to embrace this transformative technology but are currently unable to do so due to the lack of regulatory clarity.

The takeaway

Real estate tokenization has the potential to significantly improve liquidity, reduce costs, and expand accessibility to investors, but the lack of regulatory clarity in the US is currently holding back innovation in this space. As other jurisdictions progress with tokenization initiatives, the US must adapt its regulations to enable firms like Starwood Capital Group to fully embrace this transformative technology.