Public Asset Tokenization PROOF OC CONCEPT (POC)

A groundbreaking initiative to help European cities and municipalities leverage blockchain technology to unlock liquidity while retaining ownership of public assets.

Register your interest for this POC

Unlocking Public Asset Liquidity Through Tokenization

Toqenize is launching a European-wide Proof of Concept (POC) to demonstrate how real estate tokenization can provide local governments with an innovative, transparent, and compliant way to manage and finance public properties.

This initiative allows cities to digitally fractionalize their real estate assets, making them accessible to investors while maintaining full municipal ownership and control.

Why Tokenize Public Assets?

Many cities across Europe face financial constraints, requiring them to sell valuable real estate assets to raise funds. However, full asset sales lead to loss of control over strategic properties.

Tokenization offers a new alternative:

  • – Raise Liquidity Without Selling – Fractionalize municipal assets and attract funding while keeping ownership.

  • – Increase Transparency & Trust – Blockchain-based verification ensures secure, traceable transactions.

  • – Enable Public & Institutional Investment – Provide access to a regulated, efficient, and liquid investment framework.

  • – Compliance & Auditing – Our AI-powered system ensures ongoing legal and financial oversight.

With our Continuous Real-Time Auditing (CRTA) system, local governments can monitor tokenized assets in real time, ensuring compliance with EU regulations, including MiCA.

How the POC Works

This multi-country initiative is designed to test the feasibility, regulatory alignment, and efficiency of public asset tokenization. The POC follows these key phases:

Phase 1: Asset Selection & Legal Framework

  • Municipalities identify pilot real estate assets (e.g., government buildings, public lands).
  • Legal review ensures compliance with national and EU regulations.

Phase 2: Tokenization & Smart Contract Deployment

  • Real estate assets are fractionalized into security tokens on Hedera Hashgraph.
  • Toqenize’s ICID (International Cadastral Identification) ensures cross-border asset tracking and verification.

Phase 3: Investment & Monitoring

  • Tokens are offered to institutional and public investors through a compliant platform.
  • AI-powered risk monitoring and DePIN-based oracles provide real-time valuation, ownership, and compliance data.

Phase 4: Evaluation & Scaling

  • Assessment of the financial and operational impact of tokenization for municipalities.
  • Expansion to a wider European adoption framework.

Frequently Asked Questions (FAQ)

What is tokenization, and how does it apply to public assets?

Tokenization is the process of digitally representing an asset on the blockchain, enabling fractional ownership. For public real estate, it allows municipalities to raise capital from investors without losing control over the asset.

Is this compliant with European regulations?

Yes, Toqenize operates under MiCA (Markets in Crypto-Assets Regulation) and aligns with national real estate and securities laws to ensure full compliance.

Who can invest in tokenized public assets?

Depending on regulatory approval, investors may include institutional funds, retail investors, or local citizen-led investment pools.

Will municipalities lose control of their assets?

No, tokenization does not mean privatization. Local governments retain ownership and set conditions for tokenized asset management.

What are the risks of tokenization for municipalities?

1. Regulatory Complexity & Compliance

  • Tokenization of public assets must comply with EU and national real estate laws, as well as MiCA regulations for digital assets.

  • Toqenize ensures full regulatory alignment, integrating on-chain compliance mechanisms and smart contract governance.

2. Market Volatility & Asset Valuation Risks

  • Unlike traditional real estate, tokenized assets may experience price fluctuations based on market demand.

  • Solution: Stablecoin-backed collateralization mechanisms provide a buffer against volatility, allowing municipalities to access liquid capital while maintaining asset value stability.

3. Liquidity & Exit Strategies

  • The success of tokenization depends on the availability of secondary markets and investor interest.

  • Solution: Toqenize integrates staking & collateralization using stablecoins, ensuring that municipalities can leverage their tokenized assets for liquidity without needing to sell outright.

4. Adoption & Technological Barriers

  • Municipalities and regulatory bodies may be unfamiliar with blockchain and tokenization processes.

  • Solution: The Toqenize POC provides step-by-step onboarding, training, and real-world validation, ensuring smooth adoption.