Grant Cardone plans to tokenize his firm's $5 billion real estate portfolio
TL;DR
Grant Cardone plans to tokenize his firm's $5 billion real estate portfolio, following its bitcoin purchases. While property tokenization is growing rapidly, regulatory hurdles and limited secondary market liquidity remain challenges.
Key Takeaways
- •Grant Cardone's Cardone Capital is preparing to tokenize its $5 billion real estate portfolio to provide investors with collateral and liquidity.
- •The move follows the firm's previous bitcoin purchases and represents a broader push into digital assets.
- •Property tokenization is gaining traction with projections of rapid growth, but faces regulatory barriers and thin secondary market liquidity.
- •Other real estate leaders like The Trump Organization and Barry Sternlicht's Starwood Capital are also exploring tokenization.
- •Deloitte forecasts that $4 trillion in real estate could be tokenized by 2035, growing 27% annually.
What to know:
- Grant Cardone said his firm is preparing to tokenize its $5 billion real estate portfolio.
- The move follows Cardone Capital's bitcoin purchase and wider push into digital assets.
- While property tokenization is gaining traction and projected to grow quickly, regulatory hurdles and thin secondary market liquidity remain a bottleneck.
- Grant Cardone said his firm is preparing to tokenize its $5 billion real estate portfolio.
- The move follows Cardone Capital's bitcoin purchase and wider push into digital assets.
- While property tokenization is gaining traction and projected to grow quickly, regulatory hurdles and thin secondary market liquidity remain a bottleneck.
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$67,058.37 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.
- Federal prosecutors say Christopher Alexander Delgado, 34, was arrested in Florida on charges that he ran a $328 million crypto-linked Ponzi scheme through his company, Goliath Ventures.
- Authorities allege Delgado promised investors "guaranteed" or low-risk monthly returns of 3 to 8 percent from cryptocurrency liquidity pools but instead used new investor money to pay earlier participants and fund withdrawals.
- Investigators say blockchain analysis shows only about $1.5 million was sent to a crypto platform, with most funds never placed into liquidity pools, and law enforcement is urging potential victims to contact authorities as the case proceeds.
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