Blocksquare Unveils MiCAR-Aligned Real Estate Tokenization Framework
In Brief
Blocksquare has established Blocksquare SARL in Luxembourg, becoming the first platform to directly integrate with land registries, enabling the legally compliant tokenization of real estate assets in accordance with EU regulations.
Real-world asset (RWA) tokenization protocol Blocksquare announced the establishment of Blocksquare SARL in Luxembourg. This marks a milestone as it becomes the first platform to directly integrate with land registries using notarized agreements, enabling legally compliant tokenization of real estate assets in accordance with EU regulations.
“Tokenizing real-world assets has faced major roadblocks due to legal uncertainties,” said Denis Petrovcic, CEO of Blocksquare, in a written statement. “With the incorporation of Blocksquare SARL, we have established a legally enforceable framework that bridges blockchain technology with traditional property laws. By leveraging legal frameworks that the banking sector has long used to secure loans with real estate assets, we’re ensuring that investors have the security and transparency they need to confidently participate in tokenized real estate.”
Blocksquare SARL will function as the operational hub for Blocksquare’s Notarized Real Estate Tokenization Framework, a legal system designed to allow property owners to tokenize the economic rights associated with real estate assets while retaining full ownership. By leveraging Luxembourg’s regulatory environment, this framework integrates blockchain technology with traditional land registries, providing investors with legally protected economic rights through Blocksquare Property Tokens (BSPTs).
The tokenization process under Blocksquare SARL’s framework follows a structured approach. For each real estate asset, a new set of BSPT tokens is generated and allocated. The property owner acquires these tokens through a structured borrowing arrangement, where the loan is secured by placing a lien on the property title. A notary facilitates this process, and the property owner subsequently enacts a legally binding resolution to transfer the economic rights linked to the property to BSPT holders. These rights typically include income from lease agreements and potential profits from the property’s resale to third parties. In the commercial real estate sector, these revenue streams play an important role in property valuation, with investors seeking defined returns on investment. Once the process is complete, investors can acquire BSPT tokens to gain a stake in the property and trade these tokens on secondary markets, thereby increasing liquidity in the real estate sector.
Blocksquare Establishes Luxembourg Presence, Expanding Institutional Access To Tokenized Real Estate
Luxembourg is a prominent financial hub in Europe, known for its strong alignment with EU financial regulations, particularly Markets in Crypto-Assets Regulation (MiCAR). The establishment of Blocksquare SARL in Luxembourg provides regulatory certainty while offering institutional-grade access for investors.
For investors, Blocksquare SARL offers fractional ownership, liquidity on secondary markets, and legal protections in tokenized real estate assets. For property owners, it provides access to global capital while maintaining control over their assets and streamlining transactions. Additionally, partners benefit from up to 100% discounts on technology licenses based on their BST token holdings.
In 2023, Blocksquare successfully notarized the first tokenized real estate transaction in Slovenia, establishing a foundation for a legally enforceable tokenization framework. Blocksquare SARL is now preparing to launch pilot projects in Belgium and Austria. Following these initiatives, the firm plans to expand its framework into Germany, Poland, and France, with the aim of attracting institutional investors and large-scale real estate projects.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
