Blocksquare Launches Real Estate Tokenization Framework in Line with MiCAR Guidelines
In Brief
Blocksquare has launched Blocksquare SARL in Luxembourg, becoming the first platform to seamlessly connect with land registries. This groundbreaking move allows for the legal tokenization of real estate assets in full compliance with EU standards.
Protocol for Tokenizing Real-World Assets (RWA) Blocksquare Blocksquare has announced the formation of Blocksquare SARL in Luxembourg. This represents a significant milestone, as it becomes the pioneering platform to directly interface with land registries through notarized agreements, which facilitate the legal tokenization of real estate assets in line with EU standards.
"The journey towards tokenizing real-world assets has been riddled with substantial legal challenges,\" stated Denis Petrovcic, the CEO of Blocksquare, in his statement. \"The creation of Blocksquare SARL has allowed us to craft a legally binding framework that integrates blockchain technology with established property laws. By utilizing the legal structures that the banking industry has traditionally employed for securing loans against real estate, we ensure that investors are afforded the security and transparency they need to actively engage in tokenized real estate ventures.\"
Blocksquare SARL will serve as the operational nucleus for Blocksquare’s Notarized Real Estate Tokenization Framework. This legal architecture is designed to enable property owners to tokenize the economic rights linked to their real estate holdings while keeping ownership intact. By capitalizing on Luxembourg’s favorable regulatory landscape, this framework marries blockchain technology with traditional land registration systems, thus granting investors legally recognized economic rights through Blocksquare Property Tokens (BSPTs).
The tokenization strategy under the Blocksquare SARL framework adheres to a methodical approach. For each real estate asset, a fresh batch of BSPT tokens is generated and distributed. Property owners obtain these tokens via a structured lending arrangement, where the loan is secured through a lien on the property title. A notary oversees this entire process, after which the property owner executes a legally binding decision to transfer the economic rights associated with the property to the BSPT token holders. These rights usually encompass income from lease agreements and prospective profits from selling the property to third parties. In the realm of commercial real estate, these revenue streams are vital for property valuation, as investors look for predictable returns. Once the procedure is concluded, investors can pick up BSPT tokens to become stakeholders in the property and trade these tokens on secondary markets, thus enhancing liquidity within the real estate sector.
Blocksquare Launches Operations in Luxembourg, Enhancing Access to Tokenized Real Estate for Institutions
Luxembourg stands as a key financial center in Europe, recognized for its robust adherence to EU financial regulations, particularly the Markets in Crypto-Assets Regulation (MiCAR). The launch of Blocksquare SARL in this locale ensures regulatory clarity while facilitating access to institutional-grade investment channels. For investors, Blocksquare SARL presents an opportunity for fractional ownership, liquidity in secondary markets, and robust legal protections concerning tokenized real estate assets. Property owners can tap into a global pool of capital while retaining control over their properties and simplifying transaction processes. Additionally, partners can enjoy discounts of up to 100% on technology licenses, dependent on their BST token holdings. In 2023, Blocksquare accomplished the first notarized tokenized real estate transaction in Slovenia, laying the foundation for a legally sound tokenization framework. Luxembourg Blocksquare SARL is gearing up to initiate pilot programs in Belgium and Austria. Following these efforts, the firm aspires to expand its framework into Germany, Poland, and France, with a focus on attracting institutional investors and large-scale real estate developments.
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Alisa is a passionate journalist at Cryptocurrencylistings, specializing in the realm of cryptocurrency, zero-knowledge proofs, investments, and the vast opportunities within Web3. With a sharp focus on emerging trends and technologies, she provides in-depth coverage aimed at informing and engaging readers, navigating the fast-paced landscape of digital finance. Blocksquare Magpie Calls for Community Vote on Radpie's Proposal Aimed at Supporting Radiant Capital's Economic Framework Overhaul
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