Regarding the mainstream engines like unity, Unreal, (...) I don't see why you couldn't implement a system like the one you are talking about. It all depends on the way you do it and you could bypass the low level physics and graphics stuff, focusing on the world generation and managing part. It is very likely that something similar was already done before.
Gnollrunner is right having concerns, because with single-precision you can have 8km of terrain until you find issues. Epic roadmap had a DoublePrecision for large world map on their future task, but it seems that they archived that feature:
https://trello.com/c/wHS2AZMi/1042-link-to-the-new-public-roadmapSome says that probably is because of Physx that can handles only single-precision.
I am not sure but it seems that even the CryEngine still did not implement double precision, even if it is one of they future feature. Star Citizen convert their CryEngine-upgraded custom engine to support 64-bit:
https://www.gamersnexus.net/gg/2622-star-citizen-sean-tracy-64bit-engine-tech-edge-blendingSo I think you if you need to use a commercial engine you need to do some hack to support very large maps.