The businessman Grant Cardone and several private funds have begun to incorporate cryptocurrencies into commercial real estate transactions, mixing cash with Bitcoin in the financial structure of buildings. According to Commercial Observer, Cardone acquired a block of 300 homes in 2024 for $72.5 million and contributed $15 million to Bitcoin to the project's capital; its objective, apparently, is to allocate part of the cash flow to buying more cryptocurrency.
Context and key data
What were previously seen as isolated operations are beginning to take the form of financial structures that combine traditional and digital assets. Commercial Observer Remember that Cardone received 115 BTC for a public intervention in 2013, an amount that, when Bitcoin reached ~$69,000 per unit, was worth around $7.9 million.
Estimates regarding tokenization diverge: Deloitte It estimates that up to $4 trillion in real estate could be tokenized by 2035; meanwhile, Roland Berger It valued the market at 119 billion in 2023 and projected that it could reach 3 trillion by 2030.
How tokenization changes the market
Tokenization modifies the representation of ownership: a token can certify, on the blockchain, a verifiable portion of a real asset, facilitating transfer and, theoretically, increasing liquidity. As noted Stijn Van Nieuwerburgh, professor at Columbia Business School, quoted by Commercial Observer, It is a way for more people to access a broader asset class, democratizing investment in a certain sense.
Specialized firms argue that tokenization can simplify accounting and increase transparency; furthermore, it would open the door to secondary markets for debt and derivatives backed by blockchain code, according to Commercial Observer. However, academics warn that limited liquidity and the unique valuation of real estate make it difficult for these tokens to trade as smoothly as shares of large REITs.
What does this mean for investors, regulators, and platforms in the medium term?
Institutional appetite is growing: CoinDesk It states that Barry Sternlicht Starwood has shown interest in tokenizing assets, although the legal structures of REITs complicate its implementation. At the same time, the expansion of the stablecoin market raises concerns about collateral and stability, as noted by The New York Times.
There are also obvious risks: the volatility of cryptocurrencies, the lack of a legal obligation on some exchanges to convert stablecoins to dollars, and still insufficient regulatory oversight. “If the only advantage of tokenization for real estate were automation… adding the possibility of liquidity will cause this to explode,” he said. Steven Streetman, founder of Grotto, according Commercial Observer. Other experts insist that greater regulatory clarity and transparency are needed to protect small investors.
In the area of exchanges, and in comparison with services such as Coinbase, Some national platforms have advocated for models with additional requirements. According to the platform itself, Fazil Crypto It offers commissions between 0.5% and 1%, more than 400 cryptocurrencies starting from €1, and KYC verification with ID for Spanish citizens; the company maintains that these conditions reduce anonymity risks and simplify daily operations compared to international exchanges.
Mass adoption will depend, to a large extent, on regulatory changes and the emergence of secondary markets with sufficient liquidity so that specific property tokens can be traded without significant discounts.
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