Blocksquare, a leader in blockchain-based real estate tokenization, announced that it will be incorporating Blocksquare SARL in Luxembourg. This will establish the first platform to integrate directly with land registries through notarized agreements, and provide a legally compliant framework for real estate asset tokenization under EU regulations.
The incorporated Blocksquare SARL will act as the operational hub for the company’s Notarized Real Estate Tokenization Framework, which is a legal structure designed to make it possible for property owners to tokenize economic rights tied to their real estate assets while still maintaining full ownership. By taking advantage of Luxembourg’s well-established regulatory framework, Blocksquare’s initiative brings blockchain technology together with traditional land registries, and ensures legally protected economic rights for investors through Blocksquare Property Tokens (BSPTs).
Bridging Blockchain and Traditional Property Laws
The Tokenization Framework follows a structured process. Each tokenization event involves the issuance of a new set of BSPT tokens, which are then bought by property owners through a structured borrowing arrangement. This loan is collateralized by placing a lien on the property title, which will be facilitated by a notary. Subsequently, the property owner enacts a legally binding resolution, transferring the economic rights associated with the property to BSPT holders. These rights primarily stem from revenue streams like lease income and potential property resale proceeds.
For investors, the framework offers fractional ownership, secondary market liquidity, and legal security in tokenized real estate assets. Property owners benefit from global capital access, retained control, and streamlined transactions, while partners can receive up to 100% tech license discounts based on their BST holdings.
A Big Step Toward Institutional Adoption
“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 created a legally enforceable framework that merges blockchain technology with traditional property laws. By utilizing the same legal structures that banks use to secure loans with real estate assets, we ensure security and transparency for investors looking to participate in tokenized real estate.”
Luxembourg is widely recognized as a leading European financial hub as it offers strong regulatory alignment with EU financial laws, particularly the Markets in Crypto-Assets Regulation (MiCA). This move reinforces Blocksquare’s commitment to providing a regulated, institutional-grade investment platform for real estate tokenization.
With Blocksquare SARL, the company is now preparing to launch pilot projects in Belgium and Austria, with further expansion plans targeting Germany, Poland, and France. The company’s goal is also to attract institutional investors and large-scale real estate ventures to help cement its role as a pioneer in real estate finance.
Real-World Asset Tokenization Reaches New Highs
Blocksquare shows a lot of promise, especially as the RWA tokenization market recently surged to an all-time high of $17.1 billion in total value locked (TVL). This is a 94% increase year-over-year, according to RWA.xyz.
(Source: RWA.xyz)
Since November, the sector gained 26%, or $4 billion, with private credit (70%) and US Treasury debts (21%) dominating on-chain value. Wall Street is also increasingly bullish on RWAs, with major firms preparing for the projected $30 trillion market.
This article was originally Posted on Coinpaper.com
