DeFi-ing real estate investments

Purpose The purpose of this paper is to critically review and reflect on the financial inclusion role of Decentralized Finance (DeFi) in real estate investments and transactions, examining the premises of DeFi's real estate asset tokenization (RWA) technology for the next-gen financial value creation of hospitality real estate investments. Design/methodology/approach This critical reflection study also assesses the essence of reshaping the fabric of real estate investments and transactions with DeFi’s structural elements (e.g. RWA transactions on decentralized exchanges [DEXs]). Findings As of Q1 2025, total value locked reached $10.6bn, up from $157.79m in 2022. This sharp increase reflects growing investor confidence in holding tokenized real estate assets on DEXs, particularly in hotel and commercial real estate. Research limitations/implications Future research can expand on this foundation by conducting comparative case studies of DeFi-based and traditional hospitality investments, analyzing return profiles, risk exposures and investor behavior. Practical implications DeFi platforms allow hospitality firms, especially small or independent players, to raise funds more flexibly and transparently, using digital assets as collateral through tokenized hospitality assets (RWAs). Originality/value This study attempts to contribute to all these fronts by highlighting across-the-board practical themes of where DeFi can spawn a new set of financial models and investment landscape that are centered around decentralization and dis-intermediation for the core investment functions of the hospitality industry.