Kazakhstan has taken a major step toward the future of finance. The National Bank has launched a pilot project to tokenize commercial real estate within its regulatory sandbox for digital assets. In simple terms, one square meter of property can now exist as a digital token, DKNews.kz reports.
This is not just a technological experiment. It could fundamentally change the way people invest in real estate in Kazakhstan.
Real Estate on the Blockchain
The project is being implemented on the Apartchain platform by the company Alternative Digital Networks, in partnership with Nazarbayev University Impact Foundation, Astana Business Campus, and First Validator.
Under the pilot model, digital tokens backed by commercial real estate are issued. Each token corresponds to one square meter of a property. In other words, a building is divided into digital shares.
These shares can be bought, sold, and transferred on a specialized platform using blockchain technology.
A New Investment Opportunity
Within the pilot project, investors can:
- Purchase tokens that grant rights to a share in commercial real estate
- Conduct transactions with these tokens on the platform
- Participate in income distribution proportionally to the number of tokens they own
This means the token is not just a digital label. It represents a legal right linked to a real, physical asset.
Blockchain technology ensures transparent ownership records and a secure history of all transactions. This increases trust and reduces the risk of manipulation.
What Is a Regulatory Sandbox?
The project operates within a limited regulatory framework known as a regulatory sandbox. This allows innovative financial products to be tested in a controlled environment before being introduced to the broader market.
During the pilot, the National Bank monitors technological and operational aspects, evaluates risks, and assesses legal and regulatory practices.
The goal is to create a clear and accessible mechanism for participating in real estate transactions through digital financial assets before potentially expanding the tool to the wider Kazakhstan market.
Why It Matters
Traditionally, investing in commercial real estate requires significant capital. Tokenization could lower the entry barrier by allowing investors to purchase smaller, fractional shares of a property.
It may also improve liquidity. Selling an entire physical property can take time, while digital tokens could potentially be traded more flexibly, depending on market demand and regulatory conditions.
A Step Toward Digital Finance
The National Bank’s pilot represents a strategic move toward building a digital asset ecosystem in Kazakhstan.
If the pilot demonstrates technological reliability, regulatory clarity, and investor protection, Kazakhstan’s financial market could gain a new, transparent, and technology-driven investment instrument.
In the near future, a square meter of real estate in Kazakhstan may not only exist in official property records, but also securely recorded on the blockchain.
