Real estate mogul Grant Cardone asked which blockchain should partner with Cardone Capital to tokenize its $5 billion portfolio, publicly calling out Solana (CRYPTO: SOL), Polygon (CRYPTO: POL), and Avalanche (CRYPTO: AVAX).
The $5B Tokenization Plan
Cardone Capital is preparing to tokenize its real estate holdings to provide investors with collateral and liquidity in secondary markets, Cardone announced on X on Thursday.
The firm manages multifamily and commercial properties across the U.S. and has distributed over $500 million in cash flow to investors over 10 years.
“Cardone Capital will be the market leader tokenizing our assets at scale,” Cardone told Anthony Pompliano. “The quality of investments we buy are ‘Best in Class’ traditionally reserved only for the super wealthy and institutions.”
The move follows Cardone Capital’s Bitcoin (CRYPTO: BTC) purchase in June when the firm bought 1,000 BTC and announced plans to use real estate cash flow to accumulate more.
The tokenization strategy represents a deeper integration with digital asset infrastructure.
The Layer-2 Question
Cardone publicly asked which blockchain network would make the best strategic partner, tagging Solana, Avalanche, Polygon, Aptos (CRYPTO: APT), Bitcoin Magazine, Securitize, and tZERO.
The inquiry sparked immediate debate among blockchain communities.
Key considerations include transaction throughput capacity, fee stability, regulatory compatibility, smart contract flexibility, and institutional-grade security standards.
Enterprises increasingly view Layer-2 solutions as infrastructure for enterprise-grade blockchain adoption, particularly for high transaction volume use cases.
The firm is evaluating Ethereum (CRYPTO: ETH) Layer 2 networks for high throughput and lower gas fees.
It is also reviewing JPMorgan’s (NYSE:JPM) Onyx platform and tokenized real estate protocols like RealT and RedSwan as benchmarks.
The Market Context
Tokenization is attracting more asset managers to convert traditional assets including bonds, funds, private credit, and real estate into blockchain-based tokens.
Supporters argue tokenization streamlines ownership recordkeeping, trading, and settlement.
However, challenges remain. Uneven regulation and thin secondary trading limit liquidity.
Any digital tokens representing ownership interests would likely qualify as securities under existing law, requiring compliance with accreditation standards, disclosure requirements, and transfer restrictions.
Other real estate leaders are exploring similar paths. The Trump Organization is tokenizing loan revenue tied to a Maldives resort project. Barry Sternlicht of Starwood Capital, which manages over $125 billion, said his firm is ready to tokenize assets but faces U.S. regulatory barriers.
Deloitte forecasts that $4 trillion in real estate could be tokenized by 2035, growing 27% annually. The market remains small currently but projected to expand rapidly.
Image: Shutterstock
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