WLFI real estate tokenization has launched! Trump's second son: retail investors can buy Trump Tower for $1000.

Eric Trump, son of U.S. President Trump and co-founder of World Liberty Financial (WLFI), confirmed that they are actively advancing the WLFI real estate tokenization project related to the ongoing construction. The plan is to offer fractional ownership to the public, with a minimum investment of only $1,000 to own a share of the Trump family's high-end properties.

WLFI's revolutionary vision for real estate tokenization

Eric Trump revealed the core idea of this plan during an interview with CoinDesk TV this week. He said, "We are working on this because it relates to a specific building that I am currently working on. I think it will be absolutely fantastic." Although he did not disclose which building it is, looking at the Trump Organization's current development projects, it may involve high-end hotels or residential buildings in Washington D.C., Dubai, or New York.

This is not the first time the concept of WLFI real estate tokenization has surfaced. Previously, another co-founder of WLFI, Zach Witkoff, proposed the plan to put Trump’s real estate investment portfolio on-chain during a panel discussion at the Token2049 event held in Singapore in early October. At that time, the idea was still in the conceptual stage, and Eric Trump’s public confirmation means that the plan has entered a substantial advancement phase.

Tokenization refers to the process of converting traditional assets such as bonds, credit, equity (or in this case, real estate) into digital tokens that can be bought and sold and transferred on the blockchain. Global banks and asset management companies are increasingly exploring this model, hoping to unlock liquidity and broaden investors' access to traditionally exclusive asset classes. Institutions like BlackRock and JPMorgan have launched tokenized funds or pilot projects, while WLFI's real estate tokenization is a significant attempt from private real estate developers in this wave.

Why not finance through Deutsche Bank?

Eric Trump raised a question that challenges traditional financing models in an interview: "If I decide to build a hotel in Washington D.C., Dubai, or New York, why do I have to rely on Deutsche Bank? Why can't I turn to the public?" This question touches on the pain points of traditional real estate development financing.

Traditionally, large real estate projects require loans from banks or institutional investors, which charge high interest rates and fees, and impose strict terms and conditions on the projects. Developers have to accept these conditions as they have no other choice—retail investors cannot provide hundreds of millions of dollars in project funding on their own, and the project parties lack effective channels to split and sell fractional ownership of the projects to the public.

WLFI real estate tokenization aims to break this deadlock. Through blockchain technology, developers can divide the ownership of a building into millions of micro-shares, each worth just a few dollars or hundreds of dollars. These shares are issued in the form of tokens on the blockchain, allowing investors from anywhere in the world to purchase them through mobile wallets. This model completely bypasses traditional financial intermediaries, achieving a "developer-to-investor" disintermediated financing.

1000 USD owning Trump Tower: fractional ownership model

Eric Trump described an attractive investment model where investors only need to invest $1000 to gain fractional ownership of a building, along with additional benefits such as hotel perks or exclusive usage rights. This design elevates the WLFI real estate tokenization from a purely financial investment to a "membership" experience.

Imagine this, you spend $1000 to purchase a tokenized share of the Trump Dubai Hotel. As a token holder, you not only have fractional ownership of the hotel (which could be 0.0001% or an even smaller proportion), but you also enjoy actual benefits: possibly a few nights of free accommodation each year, restaurant discounts, gym access, or priority booking rights. This combination of "ownership + usage rights" transforms investment from a cold numerical game into an emotional connection with a physical asset.

From an investment return perspective, this fractional ownership model allows ordinary retail investors to participate in high-end real estate projects that were previously only accessible to the wealthy and institutions. Traditionally, if you wanted to invest in a luxury hotel in Manhattan, you would need at least several million dollars in capital and have to navigate through complex private equity funds or real estate trusts. Now, WLFI real estate tokenization allows you to become a shareholder of such assets with just $1000.

If the project is successful, the rental income generated from hotel operations and the property appreciation will be distributed proportionally to the Token holders. Of course, the specific distribution mechanism, the frequency of profit payments, and how to handle tax issues are all detailed issues that WLFI real estate tokenization needs to address.

Integration of Payment Rails for USD1 Stablecoin

Eric Trump stated that the plan will integrate with World Liberty Financial and its USD1 stablecoin. World Liberty Financial was established in 2024, focusing on combining crypto infrastructure with traditional financial services. The USD1 stablecoin is a core component of the WLFI ecosystem, designed to provide a stable pricing and settlement tool for transactions.

Under the framework of WLFI real estate tokenization, USD1 may play multiple roles. First, investors can use USD1 to purchase real estate tokens, avoiding the cumbersome process of converting fiat currency into cryptocurrency before making a purchase. Second, the project party may use USD1 to pay rental income or dividends, keeping the entire ecosystem on-chain and reducing touchpoints with traditional banking systems. Third, USD1 may become the primary currency pair for secondary market transactions among token holders, enhancing liquidity.

According to CoinDesk, the WLFI protocol announced last month plans to soon launch a debit card and retail application, which will make USD1 stablecoin available for everyday payments. The improvement of this payment infrastructure provides the necessary financial rails for WLFI's real estate tokenization. Investors can not only purchase fractional ownership of properties with USD1 but also use it for consumption in the real world, achieving a true "asset-payment" closed loop.

Global Layout and Investor Democratization

Eric Trump emphasized in an interview that the application of tokenization models can bring investment opportunities to his family's global supporters. The Trump family has a large supporter base worldwide, with numerous brand followers from the United States to the Middle East and Asia. In the past, these supporters could only stay at Trump hotels or purchase Trump-branded products as consumers. Now, WLFI real estate tokenization allows them to become co-owners of the assets.

The combination of this "fan economy" and "investment return" has created a unique market dynamic. For Trump’s loyal supporters, purchasing tokens of Trump Tower is not just an investment decision, but also an expression of identity. They may be willing to pay a slight premium over pure financial return calculations, as the tokens themselves hold "collectible value" or symbolize "identity."

From the perspective of market size, if Eric Trump’s idea is to "directly issue micro-shares of high-end real estate to retail investors," then the potential number of investors could reach hundreds of thousands or even millions. Assuming a $500 million hotel project, if it raises funds from 500,000 investors, each person would only need to invest an average of $1,000. This decentralized financing structure not only reduces the risk exposure for individual investors but also provides developers with a more stable source of funding.

Challenges and Opportunities in Regulatory Compliance

However, the biggest challenge facing WLFI's real estate tokenization may be regulatory compliance. According to a CoinDesk report, NYDIG (New York Digital Investment Group) stated that the stablecoin associated with Trump’s World Liberty Financial requires better certification reporting. This comment suggests that WLFI's current transparency and compliance standards may not yet meet institutional-level requirements.

Real estate tokenization essentially involves the issuance of securities. In the United States, any act of selling shares of an asset to the public with a promise of returns may be classified by the SEC as a securities issuance, requiring compliance with strict registration and disclosure requirements. WLFI must decide whether to take the fully compliant registration route (similar to the SEC registration of YLDS stablecoin) or seek an exemption path (such as Regulation A+ or Regulation CF).

Each path has its costs and limitations. While full registration offers the highest level of compliance, it is expensive and can take months. The exempt path, while faster, has strict limitations on fundraising amounts, investor qualifications, and secondary market trading. If WLFI chooses to fully decentralize its global issuance, it may conflict with U.S. securities laws and face enforcement risks.

In addition, the regulatory attitudes towards real estate tokenization vary significantly between different countries. Crypto-friendly countries like Singapore and Switzerland have relatively clear frameworks, while countries like China and India may restrict or prohibit such products. If WLFI wants to achieve the vision of "global supporter investment," it must address compliance issues in each jurisdiction one by one.

Market Prospects and Risks of Real Estate Tokenization

From a more macro perspective, WLFI real estate tokenization is part of the global trend of real estate tokenization. According to industry estimates, the total value of the global real estate market exceeds 300 trillion dollars, and if even 1% is tokenized, that amounts to a market size of 3 trillion dollars. Currently, the global real estate tokenization market size is only about several billion dollars, indicating significant growth potential.

For investors, WLFI real estate tokenization offers several attractive features. First is improved liquidity—traditional real estate investments are extremely illiquid, making it difficult to quickly cash out once purchased, whereas tokenized shares can be traded anytime on the secondary market. Second is lowered entry barriers—participation in high-end real estate investments is possible with just $1,000, which is unimaginable under traditional models. Third is enhanced transparency—transaction records on the blockchain are publicly accessible, and ownership structures are clear and well-defined.

However, the risks cannot be ignored. The real estate market itself has cyclical fluctuations, and if the economy in the project’s location experiences a recession or if there is an oversupply of properties, asset values may decline. Smart contract vulnerabilities, custody risks, and regulatory changes are all potential black swan events. Additionally, being tied to the Trump family implies political risk—President Trump’s policies and statements may stir controversy, affecting brand value and asset pricing.

For WLFI, this is a high-risk, high-reward attempt. If the project succeeds, it will become a landmark case in the field of real estate tokenization, opening up new financing channels and business models for the Trump family. If it fails, it could damage the reputation of World Liberty Financial and make regulators more vigilant towards the entire real estate tokenization industry.

The complete interview will be broadcast on CoinDesk's YouTube channel on October 21, during which more specific details about the WLFI real estate tokenization may be disclosed, including target buildings, token issuance mechanisms, revenue distribution plans, and regulatory compliance pathways.