Latvia is working on rules that would let real-world assets such as commercial property be turned into digital tokens, with a framework possible in the first half of 2027.
Economics Minister Viktors Valainis set out the plans in an interview at UN:BLOCK, a fintech conference in Riga. His ministry is working with Latvia’s central bank, the Finance Ministry and industry representatives on the framework.
What Latvia wants to tokenise
Valainis called commercial property a “good start” for tokenisation. He also mentioned using crypto to buy or sell companies or invest in property, but gave no further details.
Government bonds are on the government’s “priority list,” and Valainis said they could be tokenised in the first part of 2027. He gave no details on any issuance.
Where the work stands
Latvia’s government action plan required the Economics Ministry to assess the legal changes needed to tokenise real estate and other assets by 1 October. Valainis said that assessment is “still ongoing.”
Valainis said the potential economic benefit has not been put into numbers. Valainis’s case rests on attracting international businesses, investment and tax revenue.
His party won no seats in this month’s election, but he expects the work to stay on the next government’s agenda.
Caution on money laundering
Valainis said anti-money laundering controls are a central concern, and that the risks must be understood before new rules are introduced.
He said the government will act only when it is “1,000% sure” the solutions are transparent and understandable.
Latvia’s wider crypto plans
About 40 companies are seeking licences in Latvia under the EU’s Markets in Crypto-Assets rules, known as MiCA. Valainis pointed to approvals being granted within a month.
Latvia also plans to let people pay personal taxes in crypto, a change targeted for 2027. Valainis has said he personally supports a small national Bitcoin reserve, but no proposal has been approved, and he said a first step should be a joint decision at European Central Bank level.
What happens next
The next milestones are the completed legal assessment and the stance of the new government.
