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The EU’s MiCA regulation was a foundational element of the new real estate tokenization platform, laying the legal groundwork for the initiative, according to Blocksquare.
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Blockchain-based real estate platform Blocksquare launched a property tokenization framework in Luxembourg, marking a significant step for Europe’s blockchain industry.
Blocksquare’s Notarized Real Estate Tokenization Framework enables property owners to tokenize economic rights tied to real estate.
The framework integrates with land registries through notarized agreements, ensuring legal compliance, the company said in an announcement shared with Cointelegraph.
Blocksquare introduces an EU-compliant real estate tokenization framework. Source: BlockSquare
The land registry integration into the tokenized assets will award tokenholders a “direct legal claim backed by the value of the real estate,” according to Denis Petrovcic, CEO of Blocksquare:
“This might just be the holy grail of real estate tokenization — finally providing investors with strong legal recourse, ensuring they are not just holding digital representations but real, directly enforceable economic rights.”
The framework aims to streamline real estate investment by allowing retail investors with smaller capital allocations to participate.
“By integrating notarized agreements with land registries, Blocksquare has bridged the gap between blockchain-based assets and traditional legal protections that have been for decades leveraged by banking institutions,” Petrovcic said.
Blocksquare’s platform is part of the real-world asset (RWA) tokenization industry, which involves minting financial and tangible assets on the blockchain to improve accessibility and liquidity.
RWA global dashboard. Source: RWA.xyz
Onchain RWAs reached a cumulative all-time high of more than $17.1 billion across over 82,000 total asset holders on Feb. 3, Cointelegraph reported.
Related: Redemption arcs of 2024: Ripple’s victory, memecoins’ rise, RWA growth
MiCA provides the “legal certainty that was missing”
The new legally binding real estate tokenization framework comes shortly after the full implementation of the European Union’s Markets in Crypto-Assets Regulation (MiCA), which went into effect for crypto-asset service providers on Dec. 30, 2024.
MiCA was a significant part of the new tokenization framework’s launch, Petrovcic said:
“MiCA provides the legal certainty that was missing, making it much easier to launch new tokenized real estate marketplaces. What once took months of regulatory navigation can now be done in weeks — the only real barrier left is how fast a company can execute its go-to-market strategy.”
Blocksquare’s move to Luxembourg enables the platform to “take most of the regulatory burden away from real estate owners and marketplace operators,” while ensuring full compliance with each transaction, Petrovcic added.
Related: Transak, Uranium.io partnership lets users buy tokenized uranium with crypto
While most of the European tokenization industry’s growth is currently driven by startups, Petrovcic expects to see more corporations joining the sector to “accelerate real estate tokenization adoption across Europe.”
Some of the world’s largest management consulting firms foresee a potential 50-fold growth for the RWA sector by 2030, which could reach up to $30 trillion, according to some estimates.
Real-World Asset Tokenization Booms in the UAE! – Fastex Leads the Charge. Source: YouTube
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This article first appeared at Cointelegraph.com News
