Blocksquare Introduces EU-Compliant Real Estate Tokenization Framework Secured by Land Registries - Chainwire

05Feb

Blocksquare Introduces EU-Compliant Real Estate Tokenization Framework Secured by Land Registries

Ljubljana, Slovenia, February 5th, 2025, Chainwire

Blocksquare announced the incorporation of Blocksquare SARL in Luxembourg, marking the first platform to create a direct integration with land registries through notarized agreements for legally compliant tokenization of real estate assets under EU regulations.

Blocksquare SARL will serve as the operational hub for Blocksquare’s Notarized Real Estate Tokenization Framework, a legal structure that enables property owners to tokenize economic rights tied to real estate assets, while maintaining full ownership. Leveraging Luxembourg’s robust regulatory environment, this framework aligns blockchain technology with traditional land registries, granting investors legally protected economic rights through Blocksquare Property Tokens (BSPTs).

Blocksquare SARL’s Tokenization Framework follows a structured process. For each tokenization, Blocksquare SARL generates and allocates a new set of BSPT tokens. These tokens are then acquired by the property owner through a structured borrowing arrangement, wherein the loan is collateralized by placing a lien on the property title. This procedure is facilitated by a notary and followed by the property owner enacting a legally binding resolution to transfer economic rights derived from property ownership to BSPT holders. These rights primarily stem from revenue streams such as income from lease agreements and potential property resale to third-party buyers. In commercial real estate, these income sources play a large role in property valuation, with investors aiming for a defined return on investment. Upon completion, investors can acquire BSPT tokens to obtain a stake in a property and subsequently trade them on secondary markets, thereby enhancing liquidity within the real estate sector.

“Tokenizing real-world assets has faced major roadblocks due to legal uncertainties,” said Denis Petrovcic, CEO of Blocksquare. “With the incorporation of Blocksquare SARL, we have established a legally enforceable framework that bridges blockchain technology with traditional property laws. Leveraging legal frameworks 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.”

Luxembourg is a leading European financial hub, with a strong regulatory alignment with EU financial laws, specifically MiCAR (Markets in Crypto-Assets Regulation). The incorporation of Blocksquare SARL in Luxembourg provides regulatory assurance, while also facilitating institutional-grade access for investors.

For investors, Blocksquare SARL offers fractional ownership, secondary market liquidity, and legal security in tokenized real estate assets. For property owners, it unlocks global capital access, retained control, and streamlined transactions. Partners also receive up to 100% tech license discounts based on their $BST holdings.

Blocksquare successfully notarized the first tokenized real estate transaction in Slovenia in 2023. This transaction built the foundation of a legally binding tokenization framework, with Blocksquare SARL now set to also launch pilot projects in Belgium and Austria. Following these pilots, Blocksquare plans to rollout its framework into Germany, Poland, and France, with the goal of attracting institutional investors and large-scale real estate ventures.

About Blocksquare

Blocksquare offers SaaS solutions for blockchain-based real estate tokenization. Headquartered in Ljubljana, Slovenia, Blocksquare’s platform aims to power a global network of marketplaces, connecting investors to real estate opportunities in their region. Through its real estate tokenization protocol, anyone can digitize real estate assets at a fraction of the cost, while providing the quickest way to launch an online marketplace. Blocksquare’s Oceanpoint adds a DeFi layer to its established tokenization infrastructure to create borderless access to real estate financing, for anyone with an internet connection.