Impact Growth Capital Newsletter

Tokenized Commercial Real Estate: The Next $4 Trillion Asset Class

Impact Growth Capital
November 20, 2025

This week at IGC:
Blockchain + AI Are Reshaping Real Estate Faster Than Anyone Thinks

Indicator	Value / Level	Note
CMBS market trend	Shorter-term loans (5-yr) gaining share	Market moving to 5-year structures (pricing and terms evolving). (pennmutualam.com)
CMBS (representative yields)	5-yr / 10-yr spreads vary by deal — market yields mixed	See market commentary for deal-level pricing; CMBS structures are shortening. (pennmutualam.com)
10-Year Treasury yield	~4.08% (most recent)	Benchmark long rate for CRE discounting. (FRED)
SOFR (overnight)	~4.4% (recent range/avg in 2025)	Short-term funding cost (used in many commercial lending floors). (Global Rates)
CPI (headline, index / YoY)	CPI index ~324.8; YoY ~3.6% (latest monthly release)	Inflation affects cap rates, lease escalations, and operating costs. (Bureau of Labor Statistics)
Federal Funds Target Range (upper)	4.00% (current upper limit)	Fed policy drives rate expectations and lending spreads. (FRED)
Tokenized CRE market (current)	< $300B today	Base estimate of assets on-chain today (2024/early-2025). (Deloitte)
Deloitte projection	$4T tokenized CRE by 2035	~27% CAGR from current tokenized base to 2035 — the core thesis for institutional adoption. (Deloitte)

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The $4 Trillion On-Chain Revolution

Why Tokenized Real Estate Is About to Redefine the Entire Industry

Deloitte just released a blockbuster projection: Wall Street expects nearly $4 trillion in commercial real estate (CRE) to be tokenized within a decade.

For context?
Today, fewer than $300 billion in real estate assets live on blockchain rails.

That’s more than a 10x jump and the shift is accelerating.

Industry leaders are not surprised.
Tony Giordano of Opulent Agency put it bluntly:

And honestly? He’s right.
Because the transformation is already underway in ways most people aren’t seeing.

Below is a breakdown of the biggest signals.

1. Transferable Mortgage Bonds: AI + Blockchain in Action

A platform called BV Innovation is already integrating AI and blockchain to create transferable mortgage bonds something the industry has been trying to solve for decades.

With this model, you can:

Move your existing mortgage interest rate
Transfer it from one property to another
Pay zero prepayment penalty
Let AI automatically run risk analysis on the new asset

This eliminates one of the biggest bottlenecks in real estate investing:
being trapped by your interest rate.

This alone could change how investors buy, sell, and reposition assets.

2. Cross-Border CRE Payments Are Now Settling in Minutes

AP Mortgage is using its Connexus blockchain platform to settle commercial real estate transactions across borders.

Yesterday:

48-hour international settlement delays
High intermediary fees
Compliance bottlenecks

Today:

Settlement in minutes
Transparent transaction logs
Instant verification
No intermediaries

This isn't theory.
It’s happening right now and institutions are using it.

3. Smart Contracts Will Reshape the Entire CRE Deal Lifecycle

Deloitte’s analysis highlights the real unlock:

Smart contracts will automate all of this:

Buying
Selling
Leasing
Financing

Today, transactions depend on:
Paperwork, brokers, attorneys, lenders, verifiers, underwriters.

Tomorrow?
Smart contracts will self-execute as soon as conditions are met.

No delays.
No human bottlenecks.
No paperwork errors.
No middle layers eating time and fees.

This could compress a 90-day closing into…
hours.

4. Institutions Are Already Building the Infrastructure

This isn’t a retail-driven trend.
It’s institutional.

Who’s moving?

Global banks
Mortgage companies
Payment processors
Real estate platforms
Private equity groups
Sovereign wealth funds

When institutions build the rails, adoption becomes inevitable.

The question is no longer if the industry goes on-chain.
It’s how fast.

5. The Only Remaining Variable: Adoption Speed

The infrastructure is built.
The technology works.
The institutions are testing it.
The benefits are overwhelming.

Now the real question is:

How fast does the real estate industry actually move on-chain?

Some say 10 years.
Some say 5.
But with tokenization platforms, blockchain payments, and AI underwriting already live…

the next five years are going to completely transform the industry.

And those who understand these tools early will be the ones who scale fastest.

Impact Investing Spotlight

Tokenized Real Estate: The Fastest-Growing Asset Class No One Is Prepared For

Tokenization unlocks:

Fractional ownership
Global investor access
Instant transaction finality
Transparency + immutable records
Automated cash flow distribution
Lower operational friction
Higher liquidity in traditionally illiquid assets

This isn’t “crypto hype.”
This is institutional-grade, regulated, blockchain-enabled infrastructure.

Investors who understand this shift will gain access to the next major evolution of commercial real estate.

Those who ignore it will be left behind.