With the announcement of Blocksquare SARL’s establishment in Luxembourg, Blocksquare became the first platform to directly integrate with land registries via notarized agreements for tokenizing real estate assets in accordance with EU legislation.
Blocksquare’s Notarized Real Estate Tokenization Framework, a legal framework that allows property owners to tokenize economic rights associated with real estate assets while retaining complete ownership, will be operated by Blocksquare SARL. This framework, which makes use of Luxembourg’s strong legislative enviroment, unifies blockchain technology with conventional land registries and gives investors economically secured rights via Blocksquare Property Tokens (BSPTs).
The Tokenization Framework of Blocksquare SARL adheres to a structured process. Blocksquare SARL creates and allocates a fresh batch of BSPT tokens for every tokenization. The property owner then obtains these tokens via a structured borrowing arrangement in which a lien is placed on the property title as security for the loan. The property owner enacts a legally enforceable decision to transfer economic rights deriving from property ownership to BSPT holders after a notary facilitates this process.
Revenue streams like leasing agreements and possible property selling to outside bidders are the main sources of these rights. These revenue streams have a significant impact on commercial real estate pricing as investors want a certain return on their investment. After it is finished, investors may purchase BSPT tokens to own a piece of real estate and then sell them on secondary markets to increase liquidity in the real estate market.
Denis Petrovcic, CEO of Blocksquare stated:
“Tokenizing real-world assets has faced major roadblocks due to legal uncertainties. With the incorporation of Blocksquare SARL, we have established a legally enforceable framework that bridges blockchain technology with traditional property laws. Leveraging legal frameworks the banking sector has long used to secure loans with real estate assets, we’re ensuring that investors have the security and transparency they need to confidently participate in tokenized real estate.”
With a strong regulatory convergence with EU financial legislation, particularly MiCAR (Markets in Crypto-Assets Regulation), Luxembourg is a prominent European financial center. In addition to offering investors institutional-grade access, Blocksquare SARL’s incorporation in Luxembourg offers regulatory confidence.
Blocksquare SARL provides investors with legal certainty, secondary market liquidity, and fractional ownership of tokenized real estate assets. It gives property owners access to global finance, maintains control, and facilitates transactions. Depending on their $BST holdings, partners can also receive tech license discounts of up to 100%.
In 2023, Blocksquare was able to notarize Slovenia’s first tokenized real estate transaction. A legally binding tokenization framework was established by this transaction, and Blocksquare SARL is now planning to start pilot projects in Belgium and Austria. In order to draw in institutional investors and major real estate projects, Blocksquare intends to expand its framework into Germany, Poland, and France after these pilots.
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