Traditionally, real estate investments have been a preserve of high-capital earners who face a barrier for the smaller investor. All this, however, Blocksquare—the blockchain-based real estate platform-aims to change with the unveiling of its new EU-compliant framework for real estate tokenisation. This took its second appearance in Luxembourg, where real estate owners could now tokenise rights tied to economic rights entailed in real estate, thus making investment more accessible while enhancing legality.
With MiCA, or Markets in Crypto-Assets Regulation, setting clear legal ground, the undertaking by Blocksquare is a commendable step for the real estate industry in Europe.
Real Estate Tokenisation
Real estate tokenisation refers to the conversion of real estate assets into blockchain-based tokens that permit investors to acquire fractional ownerships in a given property and facilitate the tradeability of those assets. It therefore offers higher liquidity compared to the original direct real estate investment.
With Blocksquare’s Notarised Real Estate Tokenisation Framework, property owners can tokenise economic rights to real estate while ensuring compliance with land registries. This integration ensures that token holders have a direct legal claim backed by the property’s value.
Easy choice for me, it would be $BST. @blocksquare_io is turning real estate into a liquid, accessible asset class through tokenization.
— Eric (@bigerice3) March 6, 2025
No massive capital is needed, no long waits, just seamless ownership & trading. I’m convinced this has huge long term potential. #RWA pic.twitter.com/0hMQ1wNqy8
MiCA: Bringing Legal Certainty to Tokenisation.
This is one of the biggest challenges in real estate tokenization. The fact is that regulations are not yet crystal clear, especially in Europe. That said, the MiCA regulation should be fully in effect by December 30, 2024.
MiCA has dramatically lowered regulatory barriers for companies, thus enabling them to launch tokenised real estate marketplaces much quicker. It would take months before regulatory approvals are granted, whereas now a business can actually navigate compliance in weeks.
How Blocksquare’s Framework Helps Investors and Property Owners
Blocksquare’s real estate tokenisation framework has a lot of the following benefits for investors and property owners:
✅ Increased Accessibility: Retail investors can participate in real estate markets with smaller investments.
✅ Expanded Liquidity: tokenised assets tend to offer better opportunities for trading as compared to traditional real estate trading practices.
✅ Legal Safeguards: There is protection of legal rights for investors as the system connects with the land registries.
✅ Reduced Compliance Costs: The structure sets forth a number of burden sharing requirements, which simplify the processes for the owners of the assets.
This will bridge blockchain assets with traditional legal protections, thus making investing in tokenised real estate safer and more attractive.
The Future of Real Estate Tokenization in Europe
RWAs in the real-world asset tokenisation sector have been growing very fast as on-chain RWAs aggregate to a cumulative $17.1 billion by 82,000 asset holders as of February 2025.
Analysts project that the RWA sector could increase 50-fold in value in the year 2030 at a figure of $30 trillion. Currently, the market is more dominated by start-ups, but huge corporations are projected to enter the market, fuelling its growth.
