Latvia could have rules for tokenizing real-world assets in place in the first half of 2027, with commercial property as a possible starting point and government bonds on the list as well.

In an interview with CoinDesk, Economics Minister Viktors Valainis said he expected the work to remain on the agenda of the next government as Latvia forms a new administration.

His ministry is working with the central bank, the Finance Ministry and industry representatives on a framework intended to attract investment.

“If everything goes smoothly, I think next year, first half of the next year, we will already have the regulation,” he said, referring to proposed rules for tokenizing real-world assets, in the interview at the sidelines of UN:BLOCK, a fintech conference in Riga.

He also hopes to promote new products and opportunities linked to the cryptocurrency industry early in 2027.

The work has already passed one deadline. Item 20.5 of the government’s action plan gave the Economics Ministry until Oct. 1 to prepare an assessment of legal changes that would enable the tokenization of real estate and other assets. Asked whether it was complete, Valainis said it was “still ongoing.”

Tokenization creates blockchain-based representations of assets or rights to them. Asked where Latvia would begin, Valainis said commercial property would be a “good start,” but also mentioned the potential use of cryptocurrency to buy or sell companies or invest in property, without going into further detail.

Anti-money-laundering controls remain a central concern, he said, describing a need to understand and manage risks before introducing new rules.

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