Lava Network has signed its first RWA licensed project, planning to design a tokenized sandbox for 40,000 homes in the Caribbean.

According to Mars Finance, blockchain infrastructure protocol Lava Network has signed a non-binding memorandum of understanding with developer BHL Group to design a tokenized regulatory sandbox for its planned Caribbean residential development project, Alba Bay. The project plans for over 40,000 residential units, covering nearly 40 million square meters, costing billions of dollars, and is scheduled to begin construction as early as the first quarter of 2027. Lava claims this is its first real-world asset licensing project. Currently, no units have been tokenized, and no infrastructure has been deployed; BHL will not need to pay Lava any upfront fees. Lava's role is to support ecosystem promotion, coordinate applications from crypto-native teams, and participate in sandbox design. The commercial terms are based on usage, with no fixed fees, equity, or token grants. According to CoinGecko data, the LAVA token has fallen more than 90% from its 2024 high, with a market capitalization of approximately $9 million. Lava stated that the tokenization structure is not yet finalized, and any tokens will supplement, not replace, existing property registrations. Whether the project can proceed to the tokenization stage depends on the results of subsequent evaluations.