Grant Cardone, a prominent figure in real estate investment, has announced plans to tokenize his firm Cardone Capital’s $5 billion property portfolio, marking a significant move in the integration of blockchain technology within the real estate sector.
In a recent post on X, Cardone stated that the initiative aims to provide investors with increased collateral and liquidity in secondary markets. He expressed the ambition for Cardone Capital to become a leader in the large-scale tokenization of assets.
Cardone Capital is known for managing multi-family and commercial properties throughout the United States. Earlier this year, reports indicated that Cardone was considering using cash flow from real estate to invest in Bitcoin as part of a broader cryptocurrency strategy. The firm had previously acquired 1,000 BTC in June and plans to expand its holdings.
The trend of tokenization is gaining traction among asset managers, who are increasingly looking to convert traditional assets—including bonds, private credit, and real estate—into blockchain-based tokens. Proponents argue that this method can enhance the efficiency of ownership record-keeping, trading, and settlement processes. However, a report by EY highlighted that inconsistent regulations and limited secondary trading can hinder liquidity in this emerging market.
Other notable players in the real estate industry are also exploring tokenization. The Trump Organization is in the process of tokenizing loan revenue associated with a new resort project in the Maldives. Barry Sternlicht, CEO of Starwood Capital, which oversees more than $125 billion in assets, has expressed readiness to tokenize assets but faces challenges due to U.S. regulatory constraints.
Despite its current small scale, the tokenized real estate market is expected to expand significantly in the coming years. Deloitte has projected that by 2035, up to $4 trillion in real estate could be tokenized, with an annual growth rate of 27%.
Grant Cardone's Cardone Capital plans to tokenize its $5 billion real estate portfolio, joining a growing trend in the industry. This move aims to enhance liquidity and collateral for investors, although regulatory challenges remain a concern.