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T-Blocks was featured in the first edition of On-Chain Magazine, launched at the prestigious Token 2049 conference in Singapore, the largest event for digital assets in 2024. The article outlines our efforts to reshape Albania’s and the Balkans real estate investment sector using blockchain technology and tokenization. T-Blocks connects local developers with global capital, opening up new investment opportunities in large-scale real estate and ESG projects. This allows foreign investors to benefit from the region’s growth potential, driven by its EU accession prospects and the booming tourism sector.
We encourage you to read the full article in the attached PDF and explore the transformative projects we are working on via our Our Projects page.
Below is the text version of the first edition of On-Chain Magazine, authored by Lukas Fiedler, as featured in the printed issue.
Tokenization of Real World Assets
The tokenization of real-world assets has gained significant momentum in the blockchain space over recent years. Major companies are issuing bonds on the blockchain, security token platforms are allowing investors to participate in the success of startups, and real estate is now being fractionalized through digital security tokens, available for international investors. One startup, T-Blocks, is aiming to revolutionize Albania’s capital markets through tokenization.
A Misunderstood Country
Albania, a Mediterranean nation with just over 2.4 million inhabitants, shares its coastline with Italy, Greece, and Croatia. However, unlike these countries, it hasn’t developed under the European Union’s umbrella. Despite common stereotypes, Albania has made notable progress in recent years. Since 2000, its GDP has tripled, and investments in modern infrastructure have surged. According to the United Nations Office on Drugs and Crime, Albania is safer than many European nations and has made strides in combating corruption. With a young, well-educated, and multilingual population, Albania is becoming an attractive destination for both tourism and investments.
The Blockchain Scene in Albania
T-Blocks founders, Henri Ndreca and Eni Shtini, first met in 2022 as experts on Albania’s largest national TV show. Invited to discuss blockchain technology and the rise of new asset classes, they quickly realized that they were among the few in the country with a deep understanding of the technology. “I believe less than one percent of the population truly grasps blockchain,” says Shtini. After months of brainstorming, a contact from their network approached them, seeking advice on raising capital for a five-star hotel through blockchain. This marked the inception of T-Blocks, which was founded in London with the mission of connecting asset owners with global capital through tokenization.
Why Tokenization and Why London?
Tokenization allows new asset classes, such as real estate, to be accessible to a wider pool of investors. For instance, a real estate asset valued at €10,000 can be represented by 1,000 tokens on the blockchain, enabling investments as small as €10. The challenge lies in legally linking the asset to the token. This is where T-Blocks steps in, utilizing a Special Purpose Vehicle (SPV) in Luxembourg to establish a secure legal framework for international investors. Luxembourg’s robust security token regulations make it an ideal jurisdiction for T-Blocks operations.
T-Blocks – The Ideal Setup for Tokenization
T-Blocks’ solution addresses the financial challenges faced by developers in Albania and the Balkans. “The current system hinders economic growth! That’s why, with the help of a former Governor of the Central Bank of Albania, Ardian Fullani, we held discussions with 14 of the biggest developers in the country. Ardian Fullani was also one of our first supporters, which was a strong signal of validation for us in an environment where bankers are often seen as ‘enemies’,” explains Shtini.
The construction industry in Albania is traditionally not very innovative, and tokenization is a relatively new concept in the region. T-Blocks, however, has simplified the process for developers. “Real estate developers don’t even notice the blockchain,” says Ndreca. For each project available on the platform, a Special Purpose Vehicle (SPV) is created in Luxembourg. This structure is preferable for investors, as Balkan-based setups are often seen as risky. Investors receive tokens representing ownership, and the funds are channeled through traditional means, such as banks and fintech platforms. These tokens can later be traded on regulated marketplaces, but the primary focus of T-Blocks is on raising initial capital, not on creating a liquid market for tokens.
Initially, T-Blocks focuses on professional investors, which reduces regulatory requirements. For tokenization to occur, projects must have a minimum value of €3 million, with only a portion of the project being tokenized. Developers are encouraged to pursue other traditional financing methods alongside tokenization.
Positive Prospects for T-Blocks
T-Blocks has already secured over €235 million worth of tokenization projects, and liquidity seems promising. Many wealthy individuals and members of the Albanian and Balkan diaspora are eager to invest in their home region, but have been limited by the lack of secure infrastructure. T-Blocks offers a fully digital and EU-compliant investment platform, enabling these individuals to participate in the region’s growth.
Henri Ndreca and Eni Shtini believe that Albania, with its underdeveloped capital markets, is uniquely positioned to leapfrog more developed countries in adopting blockchain technology. With no real competitors in the Balkan region, they are well-positioned to lead the way in tokenizing