Real estate mogul Grant Cardone is preparing to tokenize his firm’s $5 billion real estate portfolio, the latest property heavyweight to explore blockchain-based ownership.
In a Thursday X post, the investor said that Cardone Capital plans to tokenize its holdings to give investors "collateral and liquidity in the secondary markets." He added that the firm aims to become a market leader in tokenizing assets at scale.
Cardone Capital manages multi-family and commercial properties across the U.S. In January, CoinDesk reported that Cardone was planning to use real estate cash flow to buy bitcoin BTC$67,331.11 as part of a long-term crypto strategy. The firm purchased 1,000 BTC in June and has said it intends to add more to its balance sheet
Tokenization is attracting more and more asset managers to turn traditional assets such as bonds, funds, private credit and real estate into tokens on blockchain rails. In the case of real estate, supporters say that tokenization can streamline ownership record-keeping, trading and settlement. However, uneven regulation remains a bottleneck and thin secondary trading can limit liquidity, a report by EY pointed out.
Other real estate leaders are exploring similar paths. The Trump Organization, the real estate conglomerate of Donald Trump and his family, is tokenizing loan revenue tied to a new Maldives resort project. Barry Sternlicht of Starwood Capital, which manages over $125 billion, recently said his firm is ready to tokenize assets but faces U.S. regulatory barriers.
The tokenized real estate market remains small yet but projected to grow rapidly over the next decade. Deloitte forecasted that $4 trillion in real estate could be tokenized by 2035, growing 27% annually.