Real estate mogul Grant Cardone is preparing to tokenize his company’s $5 billion real estate portfolio, the latest real estate heavyweight to explore blockchain-based property.
In an article on Thursday He added that the company aims to become a market leader in large-scale asset tokenization.
Cardone Capital manages multifamily and commercial properties across the United States. In January, CoinDesk reported that Cardone planned to use real estate cash flow to buy Bitcoin. as part of a long-term crypto strategy. The company purchased 1,000 BTC in June and announced plans to add more to its balance sheet.
Tokenization is incentivizing more and more asset managers to transform traditional assets such as bonds, funds, private credit and real estate into tokens on the blockchain rails. In the case of real estate, proponents argue that tokenization can streamline property recordkeeping, trading, and settlement. However, uneven regulation remains a bottleneck and weak secondary trading can limit liquidity, an EY report points out.
Other real estate leaders are exploring similar avenues. The Trump Organization, the real estate conglomerate of Donald Trump and his family, is symbolizing loan income linked to a new resort project in the Maldives. Barry Sternlicht of Starwood Capital, which manages more than $125 billion, recently said his company was ready to tokenize its assets but was facing U.S. regulatory barriers.
The tokenized real estate market still remains small, but is expected to grow rapidly over the next decade. Deloitte predicts that $4 trillion in real estate could be tokenized by 2035, an annual growth of 27%.
Read more: Real estate billionaire Barry Sternlicht ready to tokenize his assets, but says US regulations are blocking him
