Tokenized Real Estate Isn’t About Liquidity — It’s About Rewriting Wealth Access
Crypto Leaders May Be Missing the Bigger Picture, Says MetaWealth Co-CEO Darren Carvalho
Crypto executives are underestimating real estate tokenization’s long-term power, according to Darren Carvalho, Co-Founder and Co-CEO of MetaWealth. Speaking in response to recent skepticism voiced at Paris Blockchain Week, Carvalho argues that tokenized property isn’t a niche experiment — it’s a financial revolution in progress.
At the heart of the debate is Securitize COO Michael Sonnenshein’s claim that real estate is a “sub-optimal asset class for tokenization.” Carvalho doesn’t just disagree — he says this thinking misses the real promise of tokenized property: democratizing access to the world’s most valuable asset class.
The World’s Largest Asset Class Is Ready for the Blockchain
Real estate is a $654.39 trillion market (Statista, 2024). When crypto leaders downplay this opportunity, they risk sidelining what could become one of the largest use cases for blockchain.
While traditionalists point to “good systems” already in place, Carvalho highlights the deep inefficiencies that plague current processes:
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Purchasing fees in markets like the UK can add up to 10% of a property’s cost.
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Settlement periods can drag on for months, especially in cross-border deals.
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The paperwork is endless, and compliance remains prone to error and fraud.
Smart contracts and immutable records on the blockchain can fix these systemic issues — automating compliance, speeding up settlements, and making fraud nearly impossible.
It’s Not Just About Liquidity — It’s About Access
Sonnenshein suggests that crypto users want liquid assets. Carvalho counters: “For the 99%, it’s not liquidity — it’s access.”
Today’s institutional-grade real estate investments are out of reach for most people. Barriers include:
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High minimum capital requirements
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Accredited investor restrictions
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Multi-year lockups with minimal control or transparency
With tokenized ownership, investors can start with as little as $100, earn proportional income, and eventually trade their shares on secondary markets. That’s not just convenience — it’s economic empowerment.
Fractional Ownership Is the Game Changer
Some critics say tokenized ownership doesn’t translate well to real estate. But Carvalho says the opposite is true. Blockchain’s strength is in enabling transparent, secure fractional investments.
For example, a $50 million development can be divided into 500,000 tokens, each offering a slice of rental income and asset appreciation. This isn’t theoretical — it’s already being implemented.
Unlike traditional REITs, which come with high fees and limited transparency, tokenized real estate allows people to build personalized, diversified portfolios through one digital wallet.
Institutional Momentum Is Already Here
Carvalho warns against ignoring the infrastructure quietly taking shape. Consider:
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BlackRock’s tokenized money market fund, BUIDL, is nearing $3 billion in assets
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UBS, Franklin Templeton, and Hamilton Lane have all launched tokenized vehicles
This isn’t anecdotal — it’s momentum.
Every new entrant increases connectivity and liquidity, creating a network effect that amplifies adoption. As Carvalho puts it: “We’re witnessing the early stages of a self-reinforcing cycle.”
And global regulators are starting to catch up. The UAE, for instance, has committed to tokenizing $1 billion in real estate, setting a precedent others are likely to follow.
For too long, institutional investors have had exclusive access to the most lucrative real estate deals. Tokenization breaks this monopoly, allowing the average investor to own commercial, residential, or industrial properties across borders — all without middlemen, excessive fees, or gatekeeping.
When crypto insiders focus only on liquidity, they miss the real transformation: broad-based wealth creation.
“Tokenization isn’t about making real estate slightly better — it’s about making it truly accessible,” says Carvalho.
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