National Bank of Kazakhstan tests real estate tokenization project

ASTANA. Feb 11 (Interfax) - A commercial real estate tokenization project has been launched in the National Bank of Kazakhstan's regulatory sandbox for digital assets, the regulator's press service said.

The project involves the issuance of digital tokens backed by commercial real estate, where one token corresponds to one square meter of the property. Thus, real estate is represented as digital shares that can be traded on a specialized platform using blockchain technology.

Under the pilot, investors can purchase tokens entitling them to a share in commercial real estate, conduct transactions, and participate in the distribution of income (proportionally to the number of tokens they hold). The blockchain technology ensures transparent ownership records and transaction history, the National Bank said.

The pilot is being conducted in a limited regulatory environment or regulatory sandbox with monitoring of technological and operational aspects, as well as assessment of risks and law enforcement practices.

"This will help create a clear and accessible mechanism for participating in real estate transactions through digital financial assets (tokens) for the subsequent introduction of the instrument on the market of Kazakhstan," the National Bank said.

The token was launched by a participant of the regulatory sandbox - the company Alternative Digital Networks on the Apartchain platform, together with partners including Nazarbayev University Impact Foundation, Astana Business Campus and First Validator.