Tokenized real estate is rapidly advancing from experimental to foundational infrastructure.
A recent report by Deloitte forecasts that the tokenized real estate market could grow to $4 trillion by 2035. While this figure is substantial, it still represents a small fraction of the global real estate industry, which is valued at $658 trillion.
The concept behind tokenizing real estate is straightforward: blockchain technology has the potential to revolutionize how ownership is recorded, assets are accessed, and capital flows within markets. Real estate is one of the most tangible asset classes, and the transformation brought about by tokenization is significant.
To gain insights into the requirements for facilitating this transformation, I had a discussion with Teddy Pornprinya, the co-founder of Plume Network. Plume Network is focused on developing the infrastructure necessary to support scalable, compliant, and accessible tokenized real estate, as well as other real-world assets.
In our conversation, Pornprinya addresses the challenges related to cross-chain interoperability, regulatory complexities, and user trust, while highlighting how Plume is catering to both institutional investors and retail users. Here is the full Q&A.
crypto.news: Deloitte’s report projects that $4 trillion worth of real estate will be tokenized by 2035, just a decade away. Is Plume’s infrastructure equipped to handle such a high level of asset tokenization? Can you elaborate on the technical obstacles (such as latency, network capacity, throughput) you are encountering and how you plan to overcome them to establish an institutional-grade platform at such a scale?
Teddy Pornprinya: The scale of tokenization falls under our Plume Arc initiative. To accommodate this volume, we have developed a compliance-focused infrastructure that integrates directly with licensed partners for compliance and on/off-chain processes. These integrations provide us with jurisdictional flexibility, ensuring that assets are onboarded in a compliant manner regardless of their origin.
The tokenization process is managed through a workflow engine that simplifies asset onboarding for teams that may not be familiar with on-chain operations. On the infrastructure side, we have already onboarded institutional-grade products like BlackRock, Blackstone, and Pimco REITs through our Nest application. We are also actively collaborating with institutional partners in New York, including Apollo. Our infrastructure is currently supporting tokenized institutional assets, and we are confident in its ability to scale as demand increases.
crypto.news: Deloitte categorizes the tokenized real estate market into three segments: private real estate funds, tokenized loans/securitizations, and tokenized undeveloped projects. Which of these areas is Plume Networks prioritizing initially, and how does this decision shape your product roadmap for the upcoming years? Are you planning to eventually cover all these segments (or even expand into other asset classes), and if so, how will you sequence these expansions?
TP: Yes, our platform is designed to support a wide range of real-world assets, including private real estate funds, tokenized loans, securitizations, and more speculative or underdeveloped assets. The versatility of our system allows us to work with projects at any stage, from inception to full market readiness.
For instance, we assisted a private equity fund in Texas in tokenizing its mineral assets, a segment that has traditionally been offline. For more established players, our focus is on expanding distribution. Our model covers the entire process: from token creation and compliance to accessing liquidity and establishing a market presence.
crypto.news: As the tokenization of real-world assets increases, Deloitte emphasizes the need to achieve interoperability across protocols. How will Plume Networks facilitate cross-chain interoperability for tokenized assets, and do you intend for your platform to be blockchain-agnostic to enable tokens to move and trade freely across different networks?
TP: Yes, our approach is to ensure that Plume is blockchain-agnostic. Our Skylink product, developed in collaboration with LayerZero, enables us to originate yield and assets on Plume and create representations of those assets on other chains like Solana, Sui, and Injective.
With Skylink, users on other blockchains can seamlessly interact with Plume without the need for complex bridges. They can simply deposit stablecoins into local vaults, and we handle the backend processes of bridging funds to Plume, managing tokenization, and eventually redeeming assets back to the user’s chain. This approach creates a seamless omnichain experience for real-world assets, unlocking new opportunities across diverse blockchain ecosystems.
crypto.news: I have been reading about innovative on-chain structures like real estate trust deeds that hold property in a neutral third-party trust until a debt is repaid, effectively embedding legal contracts into blockchain tokens. How is Plume Networks integrating real-time compliance and legal enforcement into its platform design? For instance, can your smart contracts automatically enforce KYC/AML checks, investor accreditation limits, and jurisdiction-specific regulations during each transaction?
TP: Real-time compliance is a key aspect of our institutional strategy. We have incorporated compliance mechanisms directly into our smart contracts and token standards. Depending on the type of asset and regulatory requirements, we support both ERC-20 and ERC-3643 token standards.
This ensures that compliance is not only enforced during onboarding but continuously throughout every transaction or transfer, providing the level of security and traceability that institutions demand.
crypto.news: What is Plume Networks’ approach to distinguishing itself in this growing market, and how do you plan to compete against both blockchain-native platforms and traditional asset managers that are also venturing into asset tokenization?
TP: Rather than competing directly, we often serve as an enabler. Traditional asset managers and blockchain-native protocols frequently rely on us for distribution and infrastructure. We offer a comprehensive solution: compliant onboarding, asset issuance, liquidity sourcing, and access to our user network.
Our unique value lies in our ability to combine on-chain functionality with institutional-grade compliance and go-to-market capabilities. We assist in bringing assets onto the blockchain and facilitate their entry into the market through community engagement, token design, and narrative development, areas that are typically not well-addressed by incumbents or DeFi-native protocols.
crypto.news: Despite the promise of democratizing investment through tokenization, retail participation in real estate has historically been limited. What are the primary obstacles preventing everyday investors from embracing tokenized assets (such as knowledge gaps, regulatory hurdles, or user experience challenges)? How is Plume Networks working to overcome these barriers for retail investors while meeting the requirements of large institutional players simultaneously?
TP: Education remains a significant barrier. Many retail investors lack a comprehensive understanding of the assets they are investing in, particularly when it comes to real-world assets that are more complex than typical crypto tokens. As speculative trading subsides and more users shift towards fundamental-based investments, there is a growing interest in exposure to real-world assets.
We have also developed a product called Nest to address the KYC challenge for retail users outside the U.S. Nest allows users to deposit funds into a vault managed by a KYB-compliant entity registered in the Marshall Islands. This entity acquires institutional assets and issues tokens representing the economic interest in those assets. This structure enables retail users to gain exposure to real-world assets without violating jurisdictional regulations, similar to how DAI simplifies collateral management. This approach allows retail investors to access RWAs without compromising compliance.
crypto.news: With the potential tokenization of trillions of dollars’ worth of assets in the next decade, secure custody is a critical concern. One approach involves holding assets in neutral third-party trusts until obligations are fulfilled, underscoring the importance of investor protection. How is Plume addressing custody and security for tokenized assets on its network? Do you plan to collaborate with established custodians or develop in-house solutions to ensure that both institutional and retail investors feel confident in the security of their digital assets?
TP: Yes, we have partnered with Anchorage and Fireblocks, recognizing the importance of institutional-grade custody partners for safeguarding assets and funds. Working with these established custodians ensures the safety and security of digital assets on our platform. Many of these custodians are also investors in our project, further demonstrating their commitment to the security of assets.