World Liberty Financial (WLFI), the blockchain initiative associated with the Trump family, is advancing plans to tokenize portions of Donald Trump's vast multi-billion dollar real estate portfolio.
This project aims to turn some of the most recognisable Trump properties into digital investment products, opening up access to retail investors who would otherwise be excluded from high-value real estate.
WLFI's primary goal is to bridge the gap between exclusive real estate assets and the broader investing public by selling fractional ownership on blockchain.
Although the precise share of Trump's portfolio that will be tokenized has not yet been disclosed, Forbes values its real estate holdings, including the iconic Trump Tower buildings, at as much as $1.2 billion.
As a result, even a modest tokenization programme could generate significant liquidity and returns for investors.
Beyond the Brick: The Plan for Prime Materials
Meanwhile, Zak Folkman, co-founder of WLFI, made it clear that the project will not stop at real estate. The team is already actively exploring how real-world commodities could be brought on-chain.
According to a report from the CNBC, Folkman said:
"We've not only thought about it, we're actively working on it. I think commodities is a really interesting area for us, whether it's oil, gas, things like cotton, timber, all these things, frankly, should be traded on-chain."
The Financial Benefits for the President
Spacecrypto's scenario models provide a clear indication of what different levels of tokenization could mean for Donald Trump, highlighting the trade-off between maintaining control and the extent of financial benefit.
In a conservative scenario, where only 10-20% of the portfolio is tokenized, between $120 million and $240 million could be raised.
This could produce annual returns of between $3.6 million and $7.2 million, assuming net operating returns on tokenised assets of 3%. In this projection, Trump retains majority control of the venture.
A middle band scenario, covering 30-50% of the portfolio, would unlock up to $600 million and generate substantially higher returns without Trump having to relinquish majority control.
Here, the business is expected to produce a 5% return, generating $18 million to $30 million annually.
The more aggressive path, which involves tokenizing 70% or more of its properties, would allow Trump to raise nearly the entire book value of the portfolio, providing nearly $1 billion in immediate liquidity and providing investors with annual returns approaching $80 million, if market conditions remain stable.
Each case illustrates the delicate balance between the retention of control and the magnitude of financial benefit available to all parties involved.
