{"id":1004795195,"date":"2026-04-15T09:04:17","date_gmt":"2026-04-15T17:04:17","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004795195"},"modified":"2026-05-28T03:33:59","modified_gmt":"2026-05-28T11:33:59","slug":"will-deregulation-turbocharge-tokenization","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/will-deregulation-turbocharge-tokenization\/","title":{"rendered":"Will Deregulation Turbocharge Tokenization?"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Tokenization_AdobeStock_1931689144.jpg\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004795216\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/will-deregulation-turbocharge-tokenization\/tokenization_adobestock_1931689144\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Tokenization_AdobeStock_1931689144.jpg\" data-orig-size=\"2400,1200\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Tokenization_AdobeStock_1931689144\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Tokenization_AdobeStock_1931689144.jpg?w=1024\" height=\"512\" width=\"1024\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Tokenization_AdobeStock_1931689144.jpg?w=1024\" alt=\"\" class=\"wp-image-1004795216\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Tokenization_AdobeStock_1931689144.jpg 2400w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Tokenization_AdobeStock_1931689144.jpg?resize=300,150 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Tokenization_AdobeStock_1931689144.jpg?resize=768,384 768w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Tokenization_AdobeStock_1931689144.jpg?resize=1024,512 1024w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Tokenization_AdobeStock_1931689144.jpg?resize=1536,768 1536w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Tokenization_AdobeStock_1931689144.jpg?resize=2048,1024 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">Image by Krot Studio\/Adobe Stock<\/figcaption><\/figure>\n\n\n\n<p>By now, you&#8217;ve probably heard about real estate tokenization, but you might not know exactly what it is. Or, you may know what it is, but have your doubts that it&#8217;s ever really going to take off.<\/p>\n\n\n\n<p>Tokenization is a relatively new real estate platform built on blockchain technology that converts physical or financial assets into bite-size digital representations. These &#8220;tokens&#8221; can be securely traded or owned in fractional portions on a digital platform.<\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-fl-body-text-color has-text-color has-background wp-element-button\" href=\"https:\/\/mydigitalpublication.com\/publication\/?i=865572\" style=\"background-color:#1bb1ae\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><strong>READ THE MAGAZINE<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>While the level of tokenized real estate represents a very small share of sales volume today, a <a href=\"https:\/\/www.deloitte.com\/us\/en\/insights\/industry\/financial-services\/financial-services-industry-predictions.html#Digital-dividends-how-tokenized-real-estate\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">report from Deloitte<\/a> noted that the real estate tokenization market globally is expected to hit $4 trillion by 2035.<\/p>\n\n\n\n<p>This growing real estate niche is among the many types of transactions undergoing digitalization and <a href=\"https:\/\/www.commercialsearch.com\/news\/cdo-stack-why-blockchain-in-cre-will-survive-the-crypto-tumult\/\">recorded by blockchain<\/a>, according to Ed Nwokedi, founder, CEO &amp; director of sales at RedSwan, a brokerage firm specializing in tokenized real estate sales. Launched in 2018, RedSwan, which sells tokenized shares of industrial, multifamily and hotel assets, was a pioneer in real estate tokenization and continues to be a leader in this sector, with nearly $200 million worth of tokenized assets currently for sale on its platform.<\/p>\n\n\n\n<div class=\"wp-block-group cmw-cpe-newsletter\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group cmw-cpe-newsletter-content\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group cmw-cpe-newsletter-content-img\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"88\" height=\"88\" data-attachment-id=\"1004789535\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/?attachment_id=1004789535\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/02\/Newsletter-img-CPE.jpg\" data-orig-size=\"88,88\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Newsletter img CPE\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/02\/Newsletter-img-CPE.jpg?w=88\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/02\/Newsletter-img-CPE.jpg\" alt=\"\" class=\"wp-image-1004789535\"\/><\/figure>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group cmw-cpe-newsletter-content-text\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\" id=\"h-cpe-capital-markets-newsletter\">CPE Capital Markets Newsletter<\/h2>\n\n\n\n<p>Executive Editor Therese Fitzgerald delivers the capital markets intel that moves the needle.<\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<form class=\"cmw-inline-newsletter\" action=\"https:\/\/whatcounts.com\/bin\/listctrl\" method=\"POST\">\n  <input type=\"hidden\" name=\"slid\" value=\"5C84B893BD6D939EB336333E2E708C63\" \/>\n  <input type=\"hidden\" name=\"cmd\" value=\"subscribe\" \/>\n  <input type=\"hidden\" name=\"wxuiversionfirst\" value=\"\" \/>\n \n  <input type=\"hidden\" name=\"errors_to\" value=\"\" \/>\n\n  <label class=\"sr-only\" for=\"email\">Email<\/label>\n  <input type=\"email\" id=\"email\" name=\"email\" required maxlength=\"65\"\n         placeholder=\"Your email address\"\n         oninvalid=\"this.setCustomValidity('Please enter a valid email address')\"\n         oninput=\"this.setCustomValidity('')\"\/>\n\n  <button type=\"submit\">Sign up now<\/button>\n<\/form>\n<\/div><\/div>\n\n\n\n<p><\/p>\n\n\n\n<p>\u201cIt may look niche today, but that is how every major shift looks in the early innings,\u201d said Chris Loeffler,&nbsp;CEO &amp; chairman of the board for&nbsp;Caliber, a real estate fund manager with $2.6 billion in managed assets that is applying tokenization directly to funds and assets within its platform. \u201cTokenization has the potential to be the most important innovation in finance because it touches the basic mechanics of ownership, fundraising, reporting and liquidity across nearly every asset class.\u201d&nbsp;&nbsp;<\/p>\n\n\n\n<p>In addition, tokenized funds are more efficient to operate, offering a better operating margin for sponsors and an enhanced investor experience for the token holders, he added.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-full is-resized\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/ED-Nwokedi.jpeg\"><img loading=\"lazy\" decoding=\"async\" width=\"804\" height=\"620\" data-attachment-id=\"1004795204\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/will-deregulation-turbocharge-tokenization\/stake-real-estate-conference\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/ED-Nwokedi.jpeg\" data-orig-size=\"804,620\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;Apple Photos Clean Up&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;Ed Portrait 7\/25&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;\\ufffd 2025 introvertpunk, all rights reserved.&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;Stake Real Estate Conference&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"Stake Real Estate Conference\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;Ed Portrait 7\/25&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/ED-Nwokedi.jpeg?w=804\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/ED-Nwokedi.jpeg\" alt=\"\" class=\"wp-image-1004795204\" style=\"width:406px;height:auto\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/ED-Nwokedi.jpeg 804w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/ED-Nwokedi.jpeg?resize=300,231 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/ED-Nwokedi.jpeg?resize=768,592 768w\" sizes=\"auto, (max-width: 804px) 100vw, 804px\" \/><\/a><figcaption class=\"wp-element-caption\">Tokenization yields are intended to pay investors a pretty stable and consistent amount of dividends every quarter, noted Ed Nwodeki, RedSwan Founder, CEO &amp; Director of Sales. <\/figcaption><\/figure><\/div>\n\n\n<p>\u201cTokenization has the potential to revolutionize how real world assets, such as real estate, private equity and venture capital, are owned and transacted,\u201d said Barry DiRaimondo, chairman &amp; CEO of Steelwave. His company has recently spun off Steelwave Digital, a tokenization real estate management firm led by Mitch DiRaimondo, Barry&#8217;s son<strong>.<\/strong><\/p>\n\n\n\n<p>Under the current traditional financial ecosystem, ownership interests in privately held assets are generally illiquid unless those interests are sold concurrently with the sale of the underlying asset. Tokenization allows individual asset shareholders to sell their shares in an asset via a fully regulated digital exchange or directly peer-to-peer without selling the asset.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-tokenization-eliminates-transaction-fees\"><strong>Tokenization eliminates transaction fees<\/strong><\/h2>\n\n\n\n<p>Tokenized real estate is not only paving the way for new markets and products but it also offers real estate organizations an opportunity to overcome challenges related to operational inefficiency, high administrative costs charged to investors and limited participation.<\/p>\n\n\n\n<p>Since tokenization changes the shareholders of the LLC, not ownership of the asset, Nwokedi pointed out, it, along with blockchain, increases transaction efficiencies and eliminates excess fees associated with real estate sales, including title fees, attorney fees, brokerage fees and the underwriting analyst fee, noting that these fees add up to 7 percent on average.<\/p>\n\n\n\n<p>\u201cSo you have all these gatekeepers who are getting paid from one single transaction, which means the buyer is paying more for the asset and getting a little bit less return because of the acquisition costs,\u201d Nwokedi said.&nbsp;<\/p>\n\n\n\n<p>Even REITs charge a load and exit fee, usually 7 percent and 4 percent, respectively, he pointed out. \u201cAt the end of the day, if you&#8217;re trying to make an average of 12 percent from the REIT, it has to really perform above par in order to make sure you get your target yield.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-s-stifling-growth\"><strong>What\u2019s stifling growth<\/strong><\/h2>\n\n\n\n<p>Nwokedi suggested that investors have been slow to accept tokenized real estate because they associate the technology with cryptocurrency, which has resulted in millions in losses for investors. He believes this will change as investors come to understand tokenization is a safe, secure real estate platform that offers many advantages currently unavailable in the traditional real estate marketplace.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-full is-resized\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Barry-DiRaimondo.jpeg\"><img loading=\"lazy\" decoding=\"async\" width=\"818\" height=\"620\" data-attachment-id=\"1004795208\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/will-deregulation-turbocharge-tokenization\/barry-diraimondo\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Barry-DiRaimondo.jpeg\" data-orig-size=\"818,620\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"Barry DiRaimondo\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Barry-DiRaimondo.jpeg?w=818\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Barry-DiRaimondo.jpeg\" alt=\"\" class=\"wp-image-1004795208\" style=\"width:406px;height:auto\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Barry-DiRaimondo.jpeg 818w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Barry-DiRaimondo.jpeg?resize=300,227 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Barry-DiRaimondo.jpeg?resize=768,582 768w\" sizes=\"auto, (max-width: 818px) 100vw, 818px\" \/><\/a><figcaption class=\"wp-element-caption\">A regulatory framework is needed to reassure investors and shut out any would-be bad actors, according to Barry DiRaimondo, whose investment and development company has spun off SteelWave Digital.<\/figcaption><\/figure><\/div>\n\n\n<p>DiRaimondo also cited regulatory challenges limiting the growth of tokenization, noting most products listed on digital exchanges are anything but institutional in nature. In fact, privately held institutional assets of scale currently don\u2019t exist on any digital exchange in the U.S. because the regulatory framework that governs what you can and can\u2019t legally list on a digital exchange isn\u2019t fully established.<\/p>\n\n\n\n<p>\u201cOnce this is in place, all of the compliance rules and requirements will fall into place\u2014licensing, reporting and disclosure and so forth,\u201d DiRaimondo said. \u201cUntil the regulatory and compliance cake is fully baked, you won\u2019t have wide-scale adoption, and the ecosystem play is only on the fringe.\u201d<\/p>\n\n\n\n<p>Adoption has been gradual because early growth was constrained by regulatory uncertainty, a lack of standardized market infrastructure, integration challenges with legacy financial system and the inherently conservative risk posture of institutional investors\u2014not because the value proposition is unclear, added Prashant Kher, digital assets strategy &amp; transactions leader for EY-Parthenon.&nbsp;He suggested that a minimal&nbsp;viable&nbsp;ecosystem&nbsp;of&nbsp;mature market&nbsp;infrastructure&nbsp;is needed&nbsp;to see&nbsp;tokenization&nbsp;scale.&nbsp;<\/p>\n\n\n\n<p>Cryptocurrency also has a reputation for use by \u201cbad actors\u201d for criminal purposes, such as money laundering. However, the Securities and Exchange Commission does have rules for how tokenization companies approve new investors. And both Nwokedi and DiRaimondo emphasized that their companies have safeguards in place designed to protect against such criminal actions.<\/p>\n\n\n\n<p>Safety is inherent to the process used to transact on RedSwan\u2019s platform, Nwokedi noted. \u201cFirstly, we check the suitability of potential buyers,&#8221; he said. &#8220;We want to know who they are, what they&#8217;re capable of, and what they&#8217;re trying to do. Then they have to go through a \u2018know your client\u2019 process. This involves a screening process using their passport or driver\u2019s license to discover if they\u2019re on any kind of \u2018bad actor\u2019 or criminal list.\u201d<\/p>\n\n\n\n<p>Secondly, once the transaction is completed, RedSwan is always involved in the movement of those shares, he said. For example, token holders cannot simply sell their shares to relatives or friends, but, like stocks, have to sell through a brokerage to a third party who bids on the shares. \u201cThis eliminates bad actors because anybody who tries to buy has to go through the KYC process,\u201d Nwokedi said, noting that they also have to be income accredited.<\/p>\n\n\n\n<p>\u201cThe bad acting in any financial ecosystem is usually because there is a complete lack of agency oversight with rational regulatory and compliance standards,\u201d suggested DiRaimondo. \u201cBad acting almost always finds a void and exploits it, but today there is much less bad acting than 10 to 12 years ago.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-safe-is-the-blockchain\"><strong>How safe is the blockchain?<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-full is-resized\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Chris-Loeffler-Headshot.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"470\" height=\"364\" data-attachment-id=\"1004795212\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/will-deregulation-turbocharge-tokenization\/chris-loeffler-headshot\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Chris-Loeffler-Headshot.jpg\" data-orig-size=\"470,364\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Chris Loeffler Headshot\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Chris-Loeffler-Headshot.jpg?w=470\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Chris-Loeffler-Headshot.jpg\" alt=\"\" class=\"wp-image-1004795212\" style=\"width:407px;height:auto\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Chris-Loeffler-Headshot.jpg 470w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Chris-Loeffler-Headshot.jpg?resize=300,232 300w\" sizes=\"auto, (max-width: 470px) 100vw, 470px\" \/><\/a><figcaption class=\"wp-element-caption\">Tokenized funds are more efficient to operate, offering better margins for sponsors, said Chris Loeffler,&nbsp;CEO &amp; Chairman of the Board for&nbsp;Caliber.<\/figcaption><\/figure><\/div>\n\n\n<p>An open-source blockchain, DiRaimondo said, creates true transparency around how an asset is moved from point A to point B. And it not only provides transparency but it is also a safe transaction vehicle, providing proof of trust because no one can modify it.<\/p>\n\n\n\n<p>While even the biggest banks are regularly hacked when moving capital around, Nwokedi pointed out that it is impossible to hack a blockchain,&nbsp;noting that a blockchain consists of multiple computers linked together on the same platform. \u201cIt\u2019s like trying to hack into 52 different computers at the same time,&#8221; he said. &#8220;It hasn&#8217;t ever been done. It\u2019s really immutable, which makes it safer than anything else that we have on Earth today.\u201d<\/p>\n\n\n\n<p>Tokenization also minimizes counterparty and settlement risk by ensuring transactions complete only when all conditions are met, said Kher. Combined with enhanced auditability and end\u2011to\u2011end traceability across ownership, payments and servicing, blockchain reduces reliance on paper\u2011based workflows and disconnected systems,&nbsp;resulting in greater operational resilience and trust across the transaction lifecycle, he noted.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-advantages-of-tokenizing-assets\"><strong>Advantages of tokenizing assets<\/strong><\/h2>\n\n\n\n<p>Yields for RedSwan tokenized shares average between 6.5 to 7.5 percent for value-add properties such as hotels and between 5.25 and 6.0 percent for large institutional funds. \u201cYields are intended to pay investors a pretty stable and consistent amount of dividends every quarter, as opposed to traditional real estate, where you buy in and you have to wait for the property to stabilize because you&#8217;re kind of overpaying that 7.5 percent (fees),\u201d Nwokedi pointed out.<\/p>\n\n\n\n<p>\u201cAnd you have to wait until the property is sold, which may be four years later, to get your returns back and measure what your IRR is going to be,\u201d Nwokedi added. \u201cWe&#8217;re totally bypassing IRR with tokenization because the investor\u2019s IRR is whatever he decides to sell, what he gets from his sale plus what he&#8217;s generating from his consistent quarterly income,\u201d he added, noting that, rather than IRR, RedSwan focuses on cash-on-cash.<\/p>\n\n\n\n<p>Tokenization was initially viewed as a liquidity solution for limited partners, allowing one partner to sell their share of a project without forcing other partners to buy them out, said Dave Borsos, vice president of capital and student housing at the National Multifamily Housing Council. He noted that liquidity still is among its greatest advantages: \u201cTokenizing your equity shares facilitates the transaction and creates liquidity for a relatively illiquid asset.&#8221;<\/p>\n\n\n\n<p>But tokenization also democratizes real estate investment, expanding the pool of potential investors by fractionalizing assets into smaller shares and provides total transaction transparency and a very safe, ledger-based process for buying, selling and trading assets,&#8221; he added.<\/p>\n\n\n\n<p>When a transaction takes place on the blockchain, it\u2019s recorded for all to see, DiRaimondo said. \u201cIt\u2019s a great system to track the chain of title. Transaction timelines are compressed, there are way fewer intermediaries involved, there are significantly less formation and transactional costs and you can trade your interests 24 hours a day, seven days per week.\u201d<\/p>\n\n\n\n<p>According to reports from Deloitte, PwC, CB Insights and the World Economic Forum, tokenization also enables mortgage professionals to structure more flexible deals and connect real estate assets to a wider pool of capital in ways that traditional financing alone cannot. The Deloitte report pointed out, for example, that tokenization allows for capital generation across the capital stack, including debt, equity and hybrid funding on a single platform.<\/p>\n\n\n\n<p>Tokenization also can improve investor decision\u2011making by increasing the quality, timeliness and transparency of information available across the investment lifecycle, added Kher. Near real\u2011time visibility into asset performance, cash flows and covenant compliance enables proactive monitoring and risk management, while standardized, auditable data&nbsp;can support&nbsp;data\u2011driven valuations, he said.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Additionally, fractional exposure&nbsp;can&nbsp;improve&nbsp;portfolio construction and diversification analysis and immutable records of ownership, liens and servicing activity&nbsp;can&nbsp;reduce information asymmetry, Kher noted.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-full is-resized\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/dave_borsos_2022-1.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"310\" data-attachment-id=\"1004795221\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/will-deregulation-turbocharge-tokenization\/dave_borsos_2022-1\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/dave_borsos_2022-1.jpg\" data-orig-size=\"400,310\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"dave_borsos_2022 (1)\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/dave_borsos_2022-1.jpg?w=400\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/dave_borsos_2022-1.jpg\" alt=\"\" class=\"wp-image-1004795221\" style=\"width:400px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/dave_borsos_2022-1.jpg 400w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/dave_borsos_2022-1.jpg?resize=300,233 300w\" sizes=\"auto, (max-width: 400px) 100vw, 400px\" \/><\/a><figcaption class=\"wp-element-caption\">Tokenization was initially viewed as a liquidity solution for limited partners, allowing one partner to sell their share of a project without forcing other partners to buy them out, said Dave Boros, vice president of Capital and Student Housing at NHMC<\/figcaption><\/figure><\/div>\n\n\n<p>\u201cTogether, these dynamics enable more dynamic secondary\u2011market pricing signals, giving investors clearer insight into market sentiment and liquidity,\u201d he suggested.\u202f&nbsp;<\/p>\n\n\n\n<p>Tokenization also provides real asset values that can then be used by an investor to sell their share or for a lender to offer leverage against a share of the fund, said Loeffler, noting that it improves the speed, efficiency, cost and breadth of fundraising, so investors around the world can more easily access private funds.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-next\"><strong>What next?<\/strong><\/h2>\n\n\n\n<p>According to DiRaimondo, every major financial institution today is building out their digital securities teams and building internal protocols for tokenizing their products in anticipation of the SEC deregulating digital transactions. &#8220;But this world can only move as fast as the regulatory side of things allows,\u201d he added, noting that tokenization of privately held assets will continue to be stuck in limbo until the regulatory world gets its act together.<\/p>\n\n\n\n<p>\u201cToday, it is unclear what you can or can\u2019t do legally,\u201d DiRaimondo mentioned. \u201cThe good news is that this administration is very supportive of seeing the new financial ecosystem move forward.\u201d<\/p>\n\n\n\n<p>Tokenization is not a side story to alternative finance, Loeffler stressed. It is the future direction of all finance.&nbsp;\u201cNew terms like tokenization will eventually normalize, and the technology will simply become &#8216;how we do things.&#8217;\u201d<\/p>\n\n\n\n<p>Caliber is both implementing and investing in the technology. It established a treasury that integrates with the Chainlink oracle network to manage digital assets associated with real estate funds.<\/p>\n\n\n\n<p>Loeffler believes this will give Caliber and its investors the advantage of practical exposure to that future shift, while building the deep network, operational knowledge and positioning the firm seeks as tokenized real estate becomes more mainstream.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-text-align-center has-background\" style=\"background-color:#16a19a33\"><em><a href=\"https:\/\/mydigitalpublication.com\/publication\/?i=865572\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Read the June 2026 issue of CPE.<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sales employing this process are expected to reach $4 trillion globally by 2035.<\/p>\n","protected":false},"author":3366,"featured_media":1004795219,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21825,21783,21787],"tags":[52836,52838,38246,52837,33027],"class_list":["post-1004795195","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-finance","category-investment","category-technology","tag-caliber","tag-ey-parthenon","tag-nmhc","tag-redswan","tag-steelwave"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Will Deregulation Turbocharge Tokenization? - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/will-deregulation-turbocharge-tokenization\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Will Deregulation Turbocharge Tokenization?\" \/>\n<meta property=\"og:description\" content=\"Sales employing this process are expected to reach $4 trillion globally by 2035.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/will-deregulation-turbocharge-tokenization\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2026-04-15T17:04:17+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-05-28T11:33:59+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Tokenization_Feature_AdobeStock_1931689144.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1604\" \/>\n\t<meta property=\"og:image:height\" content=\"1200\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Patricia Kirk\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/will-deregulation-turbocharge-tokenization\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/will-deregulation-turbocharge-tokenization\\\/\"},\"author\":{\"name\":\"Patricia Kirk\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/05b48368428f74203116fc96872e12d2\"},\"headline\":\"Will Deregulation Turbocharge Tokenization?\",\"datePublished\":\"2026-04-15T17:04:17+00:00\",\"dateModified\":\"2026-05-28T11:33:59+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/will-deregulation-turbocharge-tokenization\\\/\"},\"wordCount\":2192,\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/will-deregulation-turbocharge-tokenization\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2026\\\/04\\\/Tokenization_Feature_AdobeStock_1931689144.jpg\",\"keywords\":[\"Caliber\",\"EY-Parthenon\",\"NMHC\",\"RedSwan\",\"SteelWave\"],\"articleSection\":[\"Featured\",\"Finance\",\"Investment\",\"Technology\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/will-deregulation-turbocharge-tokenization\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/will-deregulation-turbocharge-tokenization\\\/\",\"name\":\"Will Deregulation Turbocharge Tokenization? 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She formerly served as a reporter for a major daily newspaper, community newspaper editor, and writer and editor for various other online publications covering environment\\\/sustainability, medical\\\/biomedical research, international business and transportation, tech, and healthcare business and policy topics.\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/author\\\/patriciakirk\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Will Deregulation Turbocharge Tokenization? - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/will-deregulation-turbocharge-tokenization\/","og_locale":"en_US","og_type":"article","og_title":"Will Deregulation Turbocharge Tokenization?","og_description":"Sales employing this process are expected to reach $4 trillion globally by 2035.","og_url":"https:\/\/www.commercialsearch.com\/news\/will-deregulation-turbocharge-tokenization\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2026-04-15T17:04:17+00:00","article_modified_time":"2026-05-28T11:33:59+00:00","og_image":[{"width":1604,"height":1200,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Tokenization_Feature_AdobeStock_1931689144.jpg","type":"image\/jpeg"}],"author":"Patricia Kirk","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.commercialsearch.com\/news\/will-deregulation-turbocharge-tokenization\/#article","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/will-deregulation-turbocharge-tokenization\/"},"author":{"name":"Patricia Kirk","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/05b48368428f74203116fc96872e12d2"},"headline":"Will Deregulation Turbocharge Tokenization?","datePublished":"2026-04-15T17:04:17+00:00","dateModified":"2026-05-28T11:33:59+00:00","mainEntityOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/will-deregulation-turbocharge-tokenization\/"},"wordCount":2192,"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/will-deregulation-turbocharge-tokenization\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/Tokenization_Feature_AdobeStock_1931689144.jpg","keywords":["Caliber","EY-Parthenon","NMHC","RedSwan","SteelWave"],"articleSection":["Featured","Finance","Investment","Technology"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/will-deregulation-turbocharge-tokenization\/","url":"https:\/\/www.commercialsearch.com\/news\/will-deregulation-turbocharge-tokenization\/","name":"Will Deregulation Turbocharge Tokenization? 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