Grant Cardone says Cardone Capital will tokenize a $5 billion US real estate portfolio, aiming to turn property equity into blockchain based securities that could trade on secondary markets.
Key Takeaways
- Cardone Capital plans to tokenize $5 billion in real estate equity across its US multifamily and commercial portfolio
- The firm says tokenization could give investors collateral and secondary market liquidity in an asset class known for long hold times
- Cardone Capital is looking for an Ethereum Layer 2 partner and expects the offering to follow SEC securities rules, likely focused on accredited investors
- The plan comes after the firm bought 1,000 Bitcoin in June and said it intends to keep adding more as part of a broader digital asset strategy
What Happened?
Grant Cardone said Cardone Capital plans to tokenize its $5 billion real estate portfolio. In a post on X, Cardone said the goal is to give investors collateral and liquidity in secondary markets, and he framed the move as a bid to lead large scale asset tokenization.
The company manages multifamily and commercial properties across the US and has tied the initiative to a wider crypto approach that includes Bitcoin purchases.
LATEST: ⚡ Investor Grant Cardone says his company Cardone Capital will tokenize its massive real estate portfolio, with the goal of being “the market leader tokenizing our assets at scale.” pic.twitter.com/9xHoUxx6x2
— CoinMarketCap (@CoinMarketCap) February 27, 2026
A Multi Billion Dollar Push Into Tokenized Real Estate
Cardone Capital’s plan focuses on converting equity in its nationwide property portfolio into digital tokens that represent ownership rights. Supporters of real estate tokenization argue the model can simplify record keeping, make settlement faster, and allow smaller investors to access fractional exposure that normally sits behind large minimums and long lock ups.
In Cardone’s telling, the big advantage is liquidity. Traditional private real estate deals often expect investors to hold positions for years, sometimes five to ten years, before they can fully exit. The tokenized structure is meant to introduce a more flexible path by enabling controlled secondary trading, with the company floating a timeline that could open secondary market activity as early as mid 2026.
If executed as described, token holders could gain exposure similar to what investors expect from real estate equity, including rental income distributions and potential upside if property values rise. Cardone has also said the tokens would give investors collateral, pointing to the idea that tokenized positions may be easier to use in structured transactions than conventional private partnership interests.
Blockchain Choice and Trading Infrastructure
To support high volume trading without the costs and congestion that can hit major networks, the firm is seeking an Ethereum Layer 2 partner. Layer 2 networks are designed to process transactions more efficiently while still tying back to Ethereum’s security model.
The plan also points to token standards built for regulated securities. One example discussed is ERC 1400, which can embed compliance logic into smart contracts, including identity checks and transfer restrictions. That matters because tokenized real estate is not treated like a casual crypto token in the US. It is typically viewed as a security, which means issuance and transfers need guardrails.
The firm has also reviewed other infrastructure options as benchmarks, including JPMorgan’s Onyx platform and tokenized real estate projects like RealT and RedSwan, though no final partner has been publicly confirmed.
Regulation Is the Hard Part
Cardone Capital is positioning compliance as central to the rollout. The offering is expected to follow SEC securities rules and target accredited investors, with full KYC and AML checks. The structure discussed in the reports points to a common playbook used by many private digital securities offerings, including Regulation D for US private placements and Regulation S for eligible international investors.
This regulatory reality also explains why liquidity can still be tricky. Even if secondary trading exists, transfer restrictions and a limited pool of eligible buyers can slow activity. EY has previously flagged uneven regulation and thin secondary markets as major bottlenecks for real estate tokenization, even when the technology works.
Tokenization Momentum Is Growing Across Finance
Cardone Capital’s move lands at a moment when tokenization is pulling in big names. Asset managers have been exploring tokenized versions of bonds, funds, private credit, and real estate as they look for faster settlement and more programmable ownership.
Several examples keep showing up in this trend. BlackRock’s BUIDL fund, launched in 2024, has grown to nearly $3 billion and is often cited as a flagship tokenized money market product. JPMorgan has expanded its blockchain unit under the Kinexys brand and has introduced tokenized yield products on Ethereum. Franklin Templeton has processed fund activity on public blockchains including Stellar and Polygon. Reports also point to Goldman Sachs exploring a spin out related to its digital assets platform after multiple digital bond efforts.
In real estate specifically, other large players are testing similar ideas. The Trump Organization is tokenizing loan revenue tied to a Maldives resort project. Starwood Capital CEO Barry Sternlicht has said his firm is ready to tokenize assets, though he has pointed to US regulatory barriers.
A Huge Market Projection With Real Constraints
The real estate tokenization market is still small today, but forecasts are aggressive. Deloitte has projected that up to $4 trillion in real estate could be tokenized by 2035, implying rapid growth over the next decade.
Cardone Capital is effectively betting that this market will mature fast enough to support genuine liquidity, not just token issuance. If secondary trading remains thin, tokenization can still improve back office processes, but it will not deliver the investor experience Cardone is selling. The outcome may depend less on smart contracts and more on clear regulation, reliable marketplaces, and a deep pool of qualified buyers.
CoinLaw’s Takeaway
I see this as one of the more serious tokenization announcements so far, mainly because of the scale. A $5 billion portfolio is not a pilot project, it is a real attempt to push tokenization into the mainstream of property investing. In my experience, the hard part is not issuing tokens, it is creating real liquidity without turning the product into a regulatory headache.
What I found most interesting is how Cardone is tying it to a broader strategy that includes Bitcoin. If Cardone Capital can combine steady real estate cash flow with tokenized access and a clear compliance framework, it could attract a new type of investor. But if the secondary market is shallow, the liquidity promise could end up feeling more like marketing than reality.
