Brazil is testing blockchain technology to overhaul public sector real estate auctions. In a first for the state of São Paulo, the Comptroller General of the State of São Paulo (TCE-SP) will oversee efforts to record on-chain all documents of public property sales, with the aim of eliminating tampering and reducing legal disputes in high-risk asset sales.
According to the TCE-SP report, the system will record and timestamp all documents related to the upcoming auction of 10 state warehouses. This process converts standard files into “encrypted technical evidence.” Once registered, changes to files are immediately detectable and create an immutable audit trail.
Although the specific blockchain network remains undisclosed, the court acknowledged that the purpose is to reduce legal uncertainty. Brazil's public real estate auctions have historically faced challenges such as disputed ownership records and mismatched documents, and the pilot aims to address these vulnerabilities.
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Nordeste Leilões and InspireIP are responsible for tracking auction records
The auction will be conducted by Nordeste Leilões, an auction platform that has been operating in Brazil for over 15 years, in partnership with blockchain company InspireIP. Local media previously reported that the partnership was aimed at addressing recurring problems in the auction market, such as document falsification and fraudulent websites.
Arthur Nunes, official auctioneer of Nordeste Leilões, said that the blockchain model adopted for the TCE-SP auction will prevent tampering with files after registration. He said this approach provides technical safeguards for both buyers and auctioneers by creating an immutable record of all auction-related materials.
InspireIP founder Caroline Nunes confirmed that the verification process is public and independently traceable. He said the system transforms documents into technical evidence, and encrypted seals ensure visibility of even the smallest changes.
Nordeste Leilões sales data and expansion plans
Nordeste Leilões reported sales of 9.5 million Brazilian reals, or approximately $1.74 million, in 65 auctions this year. The company said the blockchain-based auction is part of its efforts to expand beyond Brazil's northern and northeastern regions to the south and southeast, where urban real estate markets are larger and more competitive.
The auction initiative comes in the wake of regulatory developments regarding blockchain and digital assets in Brazil. On October 21, the federal government announced progress in implementing a legal framework for cryptoassets that classifies cryptoassets as private movable or financial assets without the status of legal tender.
Brazil crypto rules add context ahead of February 2026 oversight
Separately, the Brazilian Central Bank has extended anti-money laundering and anti-terrorist financing requirements to digital asset service providers.
The regulation is expected to come into force in February 2026 and will introduce supervisory standards, internal monitoring requirements and customer protection measures that have not previously applied to this sector.
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