Cardone Capital Takes Real Estate On-Chain With $5B Tokenization Plan

Real estate enterprise Cardone Capital has announced plans to bring its real estate on-chain in a $5 billion tokenization plan. This positions the firm among the number of companies pivoting into the sector.

Cardone Capital Unveils $5B Real Estate Tokenization Strategy

In his latest post on X, Grant Cardone announced that his company plans to tokenize its multifamily and commercial properties in the US. The plan is expected to offer better collateral options for the investors through the secondary markets.

“Cardone Capital is preparing to tokenize its Real Estate holdings providing investors with collateral and liquidity in the secondary markets,” Cardone said. “I proven myself with a loyal retail audience of investors for 10 years distributing over $500m of cash flow to our investors”

Cardone Capital is a property management company that deals in multi-family and commercial properties. In January, the firm was looking to invest in Bitcoin using cash flow from its real estate portfolio as part of its long-term strategy. The firm acquired 1,000 BTC last June and now aims to acquire more.

Tokenization is increasingly attracting more asset managers to transform traditional assets into tokens on a blockchain network. This includes bonds, funds, private credit, and real estate. Other real estate industry leaders are also exploring similar options. Trump’s World Liberty Financial is tokenizing the revenue from loans related to a new Maldives resort project.

Also joining Cardone Capital’s real estate push, last week, Ctrl Alt and the Dubai Land Department announced that they have begun the second phase of their project to bring tokenization of real estate properties to the ledger. They announced that they would use Ripple’s institutional custody solution to securely store the tokenized version of real estate ownership.

Real Estate Tokenization Projected to Hit $4T by 2035

The tokenized real estate market is small but growing rapidly and is expected to continue doing so in the next ten years. It was forecasted by Deloitte that by 2035, $4 trillion worth of real estate could be tokenized. The firm also said the market would be growing at a rate of 27% annually.

Real estate tokenization can help institutional investors like Cardone Capital build their own portfolios with customized tokens that align with their specific investment goals. While traditional financial products may not offer hyper-personalization, tokenization can make this a reality.

For example, an issuer may want to create customized product offerings based on the sustainability rating of the assets, or for investors who want to invest in properties near airports.