Blocksquare launches EU-compliant real estate tokenization in Luxembourg
Blocksquare has launched a real estate tokenization framework in Europe, establishing Blocksquare SARL in Luxembourg to integrate blockchain technology with traditional land registries.
The framework aims to provide a legally compliant method for property owners to tokenize economic rights tied to real estate while retaining full ownership, according to a note shared with crypto.news.
Tokenization converts assets, like real estate, into digital tokens on a blockchain. Each token represents a share of the property’s economic value, such as rental income or resale profits.
Property tokens using physical property as collateral
Under the new framework, Blocksquare SARL issues Blocksquare Property Tokens for each tokenized property. The property owner acquires 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.
Denis Petrovcic, CEO of Blocksquare, said the initiative removes legal uncertainty in tokenized real estate. The company’s framework follows the same legal structures banks use to secure real estate-backed loans.
Luxembourg’s financial regulations, particularly MiCA, provide a secure foundation for the framework. Blocksquare SARL offers investors fractional ownership, the ability to trade tokens, and legal protection. Property owners benefit from access to global capital without giving up control.
Blocksquare previously completed a notarized tokenized real estate deal in Slovenia. The company plans pilot projects in Belgium and Austria, with future expansion into Germany, Poland, and France to attract institutional investors and large-scale real estate firms.
