NFTs continue to make an impact across multiple sectors, and this wave of adoption is opening up new opportunities and revealing new trends for Blockchain technology.
Recently, the real estate sector has shown interest in Blockchain technology because it opens up the potential for fractional ownership, cryptocurrency-backed mortgages, and other unique ownership, financing, and payment models.
Here’s a look at some real estate-oriented blockchain projects that are going to integrate decentralized finance, cryptocurrency payments, and non-fungible tokens (NFTs) into the industry.
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Propy is the largest real estate-focused protocol in the cryptocurrency market, focusing on automating home buying and making the closing process faster and more secure.
After becoming the first company to launch a real estate NFT in 2021, Propy made a splash with the recent US real estate NFT auction after selling a house in Tampa, Florida for 210 Ether (ETH) worth approximately $650,000.
It’s a wrap!
The first real estate NFT auction in the US is history now. Thank you so much to everyone who participated and to those who cheered us on Congratulations to the lucky winner, we can’t wait to see what you do with the #PropyNFT next! What a blast! pic.twitter.com/LHfZrNSwTN
— Propy (@PropyInc) February 10, 2022
In addition to providing proof of ownership to the holder, real estate NFTs created through Propy can also be used as proof of collateral for cryptocurrency-based loans and borrowings.
Milo offers crypto-based mortgages
When it comes to paying a mortgage, cryptocurrency holders currently have to deal with the choice of which of their tokens they are willing to sell and also incur a tax event because there are few options available when it comes to paying a mortgage with cryptocurrency.
Milo is a Miami-based fintech startup that claims to offer the world’s first “crypto mortgage” by allowing customers to use Bitcoin (BTC) as collateral to qualify for a 30-year loan.
Once launched, the service will be available to US and international clients who wish to purchase real estate in the United States.
The company has already processed some loans during the current early access phase, but those interested are encouraged to sign up for a waiting list.
Home Equity Coming to DeFi
Proof of the growing popularity of real estate-focused projects in the blockchain ecosystem can be found by looking at various projects that have burst onto the scene in 2022.
Vista Equity is a recently launched project with the goal of becoming the world’s first peer-to-peer market for real estate-backed NFT assets.
WE HAVE LAUNCHED! A home can now be fully tokenized giving consumers new financial freedoms. Investors can now buy real estate backed NFTs as securities. Read our press release https://t.co/x7WKKyiCnH. Share, like & follow. @Algorand @wsford @silviomicali #realestate #blockchain pic.twitter.com/IiCDfv6034
— Vesta Equity (@vestaequityvpm) February 15, 2022
Vesta Equity’s goal is to enable homeowners to leverage the equity in their homes through tokenization. According to the company, token holders will be able to sell a portion as a fractional NFT.
Owners typically leverage their capital by refinancing or selling, and tokenization remedy this problem by offering investors a streamlined way to invest in real estate.
QuantumRE is a similar project that has just started. Like Vista Equity, QuantumRE’s goal is to connect homeowners with investors to help them access debt-free financing while investors gain access to residential real estate.
To do this, QuantumRE helps in the process of originating Fair Housing Agreements (HEA), a type of financial tool that allows homeowners to obtain a lump sum in cash for the equity they have in their home without monthly payments, added interest or debt.
The agreement can be settled by selling the home, refinancing, or renewing the agreement. By creating liquidity and a trading platform for HEAs, QuantumRE is supporting a secondary trading market for HEAs, that can be tokenized and divided into fractional units.
QuantumRE indicated that the first fractional HEAs will be offered on the platform during the first quarter of 2022.
On an interesting side note, both Vista Equity and QuantumRE are launching their products on the blockchain. Algorand, citing the network’s fast processing speeds and low gas fees compared to the Ethereum network.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
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