Blocksquare Revolutionizes Real Estate with Tokenization Framework in Europe

Blocksquare has launched a groundbreaking real estate tokenization framework in Europe, marking a significant milestone in the integration of blockchain technology with traditional land registries. The company has established Blocksquare SARL in Luxembourg to provide a legally compliant method for property owners to tokenize economic rights tied to real estate while retaining full ownership.

What is Tokenization?

Tokenization is the process of converting assets, such as real estate, into digital tokens on a blockchain. Each token represents a share of the property’s economic value, including rental income or resale profits. This innovative approach enables property owners to access global capital without giving up control of their assets.

How Does the Framework Work?

Under the new framework, Blocksquare SARL issues Blocksquare Property Tokens (BSPTs) for each tokenized property. Property owners acquire these tokens through a structured borrowing process, using the property as collateral. A notary formalizes the transaction, and investors can later purchase BSPTs to gain a stake in the property’s financial returns. These tokens can also be traded on secondary markets, increasing liquidity in the real estate sector.

Blocksquare ensures these transactions comply with EU regulations by securing agreements with notaries and aligning with land registry systems. This approach provides investors with fractional ownership, the ability to trade tokens, and legal protection.

“Our initiative removes legal uncertainty in tokenized real estate,” said Denis Petrovcic, CEO of Blocksquare. “Our framework follows the same legal structures banks use to secure real estate-backed loans.”

Benefits of the Framework

The framework offers numerous benefits to property owners and investors, including:

  • Access to global capital without giving up control of assets
  • Fractional ownership and the ability to trade tokens
  • Legal protection and compliance with EU regulations
  • Increased liquidity in the real estate sector

Blocksquare has already completed a notarized tokenized real estate deal in Slovenia and plans to launch pilot projects in Belgium and Austria, with future expansion into Germany, Poland, and France. The company aims to attract institutional investors and large-scale real estate firms to its platform.

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