Blocksquare Revolutionizes EU Real Estate with Tokenization

Blocksquare, a Luxembourg-based blockchain startup, has launched an EU-compliant real estate tokenization platform. This innovative framework directly connects with land registries, enabling property owners to tokenize economically associated rights attached to real estate assets while retaining ownership. The platform aligns with EU legislation, ensuring legal enforcement and credibility.

The process involves creating a batch of BSPT tokens for each property, which are then allocated to the property owner through a structured borrowing arrangement. A lien is placed on the property's title, and upon completion, BSPT holders receive the economic rights to leasing revenue or potential sales. These rights are an integral part of commercial real estate pricing, ensuring an expected return on investments. BSPT tokens can be bought, held, or sold on secondary markets, increasing real estate asset liquidity.

Denis Petrovcic, CEO of Blocksquare SARL, emphasized the importance of this move, as legal uncertainties have previously hindered the tokenization of real-world assets. The incorporation of Blocksquare SARL has established a legally enforceable framework that bridges blockchain technology with traditional property laws. The convergence of Luxembourg's regulation with the financial laws of the EU, particularly the MiCAR (Markets in Crypto-Assets Regulation), further fortifies the framework and provides institutional-grade safety for investors.

In 2023, Blocksquare successfully notarized the first tokenized real estate transaction in Slovenia. Pilot projects are planned for Belgium and Austria, with Germany, Poland, and France in the development pipeline to provide access to institutional investors and large-scale real estate projects.