On April 25, 2025, a report from Deloitte Center for Financial Services predicted that the global tokenized real estate market could reach $4 trillion by 2035, showing strong growth from the current level of under $300 billion. This could be a major revolution in how real estate is funded, owned, and traded. Will tokenization truly change the traditional financial industry? Let's analyze in detail.


Tokenized Real Estate: A $4 Trillion Market by 2035

According to Deloitte's report, tokenizing real estate—the process of converting ownership of assets into digital tokens on the blockchain—is becoming an important method in funding, owning, and trading real estate. This market is expected to grow at an annual rate of 27%, from under $300 billion today to $4 trillion by 2035. Tokenization of real-world assets (RWA) is a hot field, merging crypto technology with traditional finance, allowing for the representation of ownership rights of assets like bonds, funds, and real estate on the blockchain.


Benefits of Tokenizing Real Estate

The report emphasizes that tokenization offers many superior benefits:



  • Operational efficiency: Complex financial contracts, such as real estate funds, can be automated on the blockchain with encoded rules, allowing for more efficient management of ownership and capital flow.


  • Fast and cheap payments: Tokenization helps shorten payment times, reduce intermediary costs, thereby optimizing the transaction process.


  • Expanding investors: Thanks to tokenization, real estate—which often requires large capital—becomes more accessible to retail investors through the purchase of tokenized shares.



For example, Kin Capital has launched a platform for tokenizing a $100 million real estate debt fund on Chintai, using a lending model based on trust certificates, illustrating the potential of this technology in simplifying financial transactions.


Three Development Directions of Tokenized Real Estate

Deloitte predicts that the tokenization of real estate will develop along three main directions:



  • Private real estate funds: These funds, managing real estate portfolios, could reach a value of $1 trillion by 2035 thanks to tokenization, enabling investors to easily participate and trade shares.


  • Securitization of loan ownership: This is a sector predicted to dominate, reaching $2.39 trillion by 2035. Tokenizing real estate loans allows investors to purchase debt equity in the form of tokens.


  • Undeveloped or under-construction land projects: Land and real estate development projects could contribute $500 billion, opening up investment opportunities in potential assets from the early stages.



Challenges to Overcome

Despite its great potential, tokenization of real estate still faces several challenges:



  • Asset custody: Ensuring safety and transparency in the custody of tokenized assets remains an issue that needs to be addressed, especially as the market scale increases.


  • Legal clarity: Regulations on tokenization have not yet been harmonized globally, complicating implementation in many regions.


  • Default scenarios: If a tokenized real estate project fails, mechanisms for handling defaults and protecting investors still need to be refined.



Market Context and Opportunities

The development of tokenized real estate is occurring within a context of positive signals in the crypto market. El Salvador has just proposed a 'sandbox' to the SEC in the U.S. for testing tokenized real estate, while major companies like Tether (holding over 10% of Juventus shares) and Twenty One (with a Bitcoin stash of $3.9 billion) are also promoting blockchain applications. The weakening of the USD (USDX hitting a new low of 97.9 on April 21, 2025, according to FXCE) further facilitates the rise in value of digital assets, such as Bitcoin ($85,000) and XRP ($2.19).


Deloitte states that tokenization of real estate is no longer an experiment but will become a main pillar in the financial industry. With a growth rate of 27% per year, this presents a significant opportunity for investors and businesses looking to participate in a market full of potential.


Future Prospects

If legal and technical challenges are addressed, tokenized real estate could usher in a new era for the financial industry, where retail investors can easily access high-value assets. The involvement of countries like El Salvador and major companies like Kin Capital is evidence of this technology's potential to reshape the global real estate market.


Conclusion: Will Tokenization Redefine Real Estate?

Deloitte's prediction of the tokenized real estate market reaching $4 trillion by 2035 is a strong signal, indicating the potential of blockchain to revolutionize traditional finance. With benefits such as operational efficiency, fast payments, and expanded investor access, tokenization is opening up significant opportunities, although challenges remain to be overcome. Will this technology truly change the way we own and trade real estate? Investors should be ready to embrace this wave of innovation.


Risk warning: Crypto investment carries high risks due to price volatility and legal uncertainties. Please consider carefully before participating. #anhbacong