DL Holdings is deepening its push into tokenized real-world assets, committing US$5 million to a U.S. real estate private credit fund and planning a fresh HK$40 million issuance of blockchain-based asset tokens to its shareholders.
New investment and token issuance
On June 2, the Hong Kong-based firm said it will invest US$5 million in the ONE Carmel Estate Residence Lot A Limited Partnership Fund, a private credit vehicle in the United States.
The fund will lend the same amount to Carmel Reserve LLC to finance construction of a luxury art residence in Phase I of the ONE Carmel development in California. The loan carries an 8% annual coupon over two years, with an option to extend for one more year.
In parallel, DL Holdings plans to issue an additional HK$40 million of tokenized RWA tied to the ONE Carmel project. These tokens will be distributed to shareholders, adding to the company’s existing portfolio of on-chain assets and expanding its use of blockchain for asset distribution.
Returns, profit sharing, and project role
In exchange for the loan, DL Holdings will receive a fixed 8% yearly return plus 20% participation in any surplus profits generated by the fund.
The completed luxury art residence is intended to serve as a showcase unit to support future marketing and sales across the wider ONE Carmel project, which has an estimated total project value exceeding US$2 billion as it enters its sales phase.
Details of the ONE Carmel project
ONE Carmel is located in Carmel Valley, Monterey County, near Highway 1 and Pebble Beach Golf Links. The development spans about 3.6 square kilometers and includes 66 residential lots, each averaging roughly 20,000 square meters.
The site has received a Final Subdivision Public Report from California’s Department of Real Estate, clearing a key regulatory hurdle for sales. DL Holdings said the scarcity of land, strict development approvals, and lack of new supply support the project’s appeal as a candidate for tokenization.
The firm also indicated that the limited partnership interest in the fund may later be distributed to shareholders as a special dividend in the form of digital tokens.
How DL Holdings structures its RWA tokens
Real-world asset tokenization converts tangible or financial holdings into blockchain-based tokens that represent ownership or economic rights in the underlying asset.
Under current Hong Kong rules, these tokens cannot yet be freely traded on secondary markets, but they still function as a vehicle for linking holders to project cash flows and asset performance. Ownership and returns are recorded and traceable on-chain.
Unlike traditional cash dividends, the company’s distributions are made in the form of digital tokens tied to specific assets, giving shareholders a continuing stake in projects rather than a one-off payout.
Regulatory firsts and growing tokenized portfolio
DL Holdings’ latest initiative follows approvals from Hong Kong’s Securities and Futures Commission (SFC) earlier this year for two tokenization projects: a HK$60 million commercial property interest in DL Tower and a private equity interest in Animoca Brands.
Those authorizations were described as regulatory firsts in Hong Kong for their respective asset types and gave the company a green light to structure what it says will be the city’s first luxury residential RWA via the ONE Carmel project.
With the new HK$40 million allocation linked to ONE Carmel, the total value of tokenized assets distributed as shareholder dividends by the firm now stands at about HK$100 million. DL Holdings said its broader on-chain portfolio exceeds HK$500 million.
Alignment with Hong Kong policy on digital assets
Hong Kong authorities have rolled out a series of policies since late 2022 to encourage development in blockchain and virtual assets. Initiatives such as the Hong Kong Monetary Authority’s Ensemble program are testing tokenized asset settlement systems as part of a push to build a regulated digital finance infrastructure.
DL Holdings positions its RWA efforts as consistent with these policy goals, describing its structures as compliant, blockchain-based mechanisms for distributing and tracking ownership in traditional assets.
Chairman and chief executive Chen said the objective is to build a repeatable, regulator-approved model for RWA deployment under Hong Kong’s framework. The company has pledged to provide transparent updates on the physical asset’s progress to token holders worldwide.
Global tokenization backdrop
The company’s move comes against a broader expansion in the global market for tokenized real-world assets. That market has grown about 66% since the start of the year to around US$23.6 billion in value, according to recent industry estimates.
This momentum provides a supportive backdrop for DL Holdings’ strategy of using digital tokens as a form of shareholder dividend, in contrast to conventional cash distributions.
For market participants, one focus is how regulators, especially the SFC, will shape secondary trading rules. Hong Kong has launched a pilot framework for secondary trading of tokenized investment products. As of March 2026, the city hosted 13 tokenized products available to the public, with assets under management in those products growing seven-fold to US$10.7 billion over the prior year.
The early phase of the SFC’s framework is expected to center on tokenized money market funds, with the scope potentially widening over time. Any expansion that allows RWA tokens tied to projects like ONE Carmel to trade on licensed platforms would significantly change their liquidity profile.
Yield, risk comparison, and market signals
The 8% annual coupon on the ONE Carmel-related loan offers a clear benchmark for assessing the base return attached to this specific tokenized asset.
Traders comparing yields across digital and traditional income-generating products may weigh this fixed return alongside the upside potential from the 20% surplus profit participation. That structure links token value more directly to the performance of both the construction phase and eventual sales of the luxury residence.
Monitoring construction progress, sales velocity, and pricing at ONE Carmel will provide a direct read on the health of the underlying asset. Analysts expect ongoing price resilience in California’s luxury property segment into 2026, a trend that would support the value proposition of the associated tokens if it continues.
Building a template for regulated digital finance
Chen has framed the ONE Carmel initiative as part of a wider effort to bridge traditional assets and blockchain-based finance, using regulated structures that can be replicated for future offerings in Hong Kong.
Beyond real estate, DL Holdings is working on projects in areas such as artificial intelligence infrastructure and digital asset mining. The company says these activities are intended to form an integrated digital finance network rooted in regulation and real-world value, with the ONE Carmel transaction serving as a key test case for how such models perform in practice.
Explore how tokenized RWAs could shape the next wave of compliant blockchain real-estate investments worldwide.
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