Introduction
Europe has long been a regulatory and financial leader in property markets. In 2025, it is increasingly becoming a hub for real-world asset (RWA) tokenization in real estate, driven by evolving regulations, infrastructure pilots, and institutional-scale deals.
As the FIBREE Product Database prepares for launch on October 16 (4:30 pm CET), it’s timely to map Europe’s latest movements in blockchain for real estate and construction. Click here to register for this online release event.
1. Market Scale, Forecasts & Regulatory Backdrop
Europe already holds a significant share of global tokenization activity. According to a country-by-country analysis, Europe represented approximately 23.6 % of the global tokenization market in 2024, with its real estate tokenized market valued at USD 1.23 billion, projected to grow strongly toward 2034.
Regulatory frameworks are playing a central role. The Markets in Crypto-Assets Regulation (MiCA) took effect in the EU, creating a legal basis for tokenized assets, including real estate, by prescribing licensing, transparency, and compliance obligations.
Luxembourg advanced its position by adopting Blockchain Law IV (Dec 2024) to strengthen DLT use within financial and tokenization frameworks.
The EU’s DLT Pilot Regime supports experimental tokenized asset markets, providing exemptions in supervised environments.
Together, these set the stage for European tokenized real estate to scale in a regulated, cross-border manner.
2. Significant Milestones achieved by pioneers in Europe
One of the clearest European success stories is Blocksquare, a tokenization infrastructure provider. In February 2025, Blocksquare launched a EU-compliant real estate tokenization framework in Luxembourg, integrating with land registries and relying on notarized agreements to enforce economic rights.
That framework bridges blockchain with property law, enabling tokenization of economic rights while preserving traditional property ownership.
By mid-2025, Blocksquare announced it had surpassed USD 200 million in tokenized real estate assets across 66 properties in 29 countries, a strong signal of global adoption starting from European roots. Another important player in the European market and beyod is DigiShares, that reports to have already surpassed the USD 1 billion of tokenized assets volume on their platform. Both their models of providing white-label infrastructure are defining the current European direction: platforms enabling tokenization rather than being property originators.
DigiShares’ and Blocksquare’s presence was, together with other real estate tokenization companies like Briccken, Nyala Digital Asset AG or REClosure, also recognized by the European Blockchain Sandbox (EBS), which selected their tokenization solutions as pioneering lighthouses to further shape the regulatory framework proposals for real estate assets in the EU.
3. Project-Level Initiatives & Market Experiments
Beyond infrastructure, a few project-level moves in Europe show tokenization entering tangible real estate:
- In Italy, EDSX (a compliant secondary market platform) launched its first real estate tokenization project, Maison Valdigne in Courmayeur, involving 16 apartments and retail space, with both primary issuance and planned secondary trading. Similar initiatives are recently noted elsewhere in Europe, like Asset List, RealEstate.Exchange and Tokelytics.
- Industry commentary also notes that Blocksquare and Vera Capital agreed recently to tokenize USD 1 billion in commercial European real estate, marking one of the largest deals to date in the region.
These initiatives reflect an evolution from proofs-of-concept to market maturity with assets with known project parameters and investor expectations.
4. European Challenges & Observations
From the evidence, a few patterns and challenges emerge:
- Legal enforceability matters: Blocksquare’s focus on notarized agreements and registry integration underscores that tokenization in Europe must operate within existing property law, not outside it.
- Scale is still modest: Though USD 1.2+ billion is a strong milestone, in the context of Europe’s large real estate markets, these tokenized assets remain a small slice.
- Cross-border complexity: National property, notary, and registry systems diverge across EU and member states, complicating unified token frameworks.
- Infrastructure-first approach pays off: Projects that build tokenization platforms are getting traction, while many smaller “tokenized real estate” offerings without robust legal backing struggle to scale.
- ESG / transparency drive: Tokenization is increasingly pitched as enhancing transparency, traceability, and compliance—features that align with the EU’s sustainability and financial regulation priorities.
Conclusion & Outlook
Europe is not just keeping pace with global RWA tokenization—it is setting foundational standards. With MiCA regulation, Luxembourg’s legal infrastructure, European sandbox programs, and real assets being tokenized under compliant frameworks, the region is turning tokenization from experiment to infrastructure.
The next decade will test whether tokenized real estate in Europe can scale into tens or hundreds of billions in value, cross national boundaries, and integrate with broader financial systems. Infrastructure-first players are at the vanguard, but success will depend on broader adoption by developers, real estate platforms, regulators, and capital markets.
As the FIBREE Product Database release on October 16 (4:30 pm CET) approaches, Europe’s journey offers lessons and comparators for other regions. By mapping these developments side by side, the industry can better understand where real estate and blockchain is succeeding—and where interoperability, legal design, and scale remain the real challenges to crack. Click here to register for this online release event on October 16th.