In a landmark move for the convergence of traditional finance and blockchain technology, U.S. real estate investment firm Cardone Capital has revealed plans to tokenize approximately $5 billion worth of its commercial property portfolio. This initiative, reported by CoinDesk, represents one of the most substantial commitments to real-world asset (RWA) tokenization by a major real estate entity and signals a strategic evolution from the firm's previous announcement of a Bitcoin-focused fund in April of the prior year.
The tokenization process will involve converting equity in a diverse collection of multifamily and commercial properties across the United States into digital tokens on a blockchain. These tokens will represent fractional ownership, allowing investors to purchase shares in specific buildings or a pooled fund. This model promises enhanced liquidity through potential 24/7 secondary market trading, lower capital barriers for smaller investors, and greater transparency via an immutable ledger.
The initiative faces a complex regulatory landscape, as the U.S. Securities and Exchange Commission (SEC) classifies most tokenized real estate offerings as securities. Cardone Capital must ensure full compliance with regulations like Regulation D or Regulation S, working with legal experts and technology partners to structure the tokens correctly. "Tokenization isn’t just about innovation, it needs strong guardrails," emphasized Vincent Kadar, CEO of Polymath.
Financial technology experts view the move as a validation of the tokenization thesis. "When established players with billions in assets under management make this commitment, it signals a move from experimentation to implementation," noted Dr. Anya Sharma, a fintech researcher. The project's success hinges on meticulous execution across legal structuring, investor verification (KYC/AML), custody solutions, and transparent property valuation and disclosure.
This large-scale entry places Cardone Capital in competition with both blockchain-native platforms like RealT and RedSwan and traditional finance giants such as JPMorgan with its Onyx platform. A 2024 PwC report estimated the total value of tokenized RWAs could reach $10 trillion by 2030, making Cardone's $5 billion pledge a potential catalyst for accelerated industry-wide adoption.
