Blocksquare, an award-winning company, offers a blockchain-based real estate tokenization system. It empowers businesses, from startups to large enterprises, to digitize the value of real estate properties, launch investment platforms, and connect investors to tokenized real estate deals online​​.

Tokenization significantly alters real estate investment, enabling numerous transactions of the same asset within minutes, unlike traditional real estate which is highly illiquid and transactions occur infrequently. Real estate, being the largest asset class globally, suffers from market illiquidity, especially in smaller markets. Tokenization, by allowing investments of any size, enhances market liquidity and opens opportunities in a broader range of markets​​.

Blocksquare aims to power hundreds of platforms worldwide, linking investors to regional real estate opportunities. Its tokenization protocol enables cost-effective digitization of real estate assets. The white-label platform facilitates the quick launch of investment marketplaces. In 2022, Blocksquare expanded into the DeFi market with Oceanpoint.fi, a bridge for real estate owners to access decentralized financial markets via tokenization​​.

Real estate tokenization protocol, white-label marketplace, and DeFi bridge​​.

The protocol involves creating a 'PropToken' smart contract, an Ethereum ERC-20 smart contract, to represent a specific real estate property. The smart contract includes unique property identification and transactional rules. The protocol ensures legal enforceability through a Corporate Resolution, making it credible and secure for investors​​.

Blocksquare Property Tokens (BSPTs)

BSPTs, unique for each asset, incorporate important data such as capital stack information, location, geo-coordinates, property valuation, and land registry data. These features bring transparency and legal binding to the tokens​​.

Blocksquare's system adheres to AML regulations, requiring KYC completion for token holders. The token transfer is regulated and can be limited as per the issuer's requirements, balancing token liquidity and compliance​​.

The Corporate Resolution is a pivotal legal document in the tokenization process, ensuring the transfer of legal rights and financial obligations from the issuer to the token holders. It outlines the relationship between the issuer and the real estate asset, the revenue share for token holders, and conditions for token buyback and valuation​​.

  • Benefits:
    • Increased liquidity and accessibility in real estate investments.
    • Enhanced transparency through on-chain property registry and valuation.
    • Legal security through corporate resolution and compliance with AML regulations.
  • Risks:
    • Market adoption: The success of Blocksquare heavily depends on the adoption rate of its tokenization concept across the real estate market.
    • Regulatory changes: Changes in blockchain and real estate regulations could impact Blocksquare's operations.
    • Technology dependency: Being based on blockchain, the system is reliant on the stability and security of underlying technologies.

Conclusion

Blocksquare unlocks increased liquidity, makes real estate investments more accessible, and provides transparency and legal security. However, the success of this venture relies on market adoption and regulatory landscapes.