NFTs are still having an impact in multiple sectors. This mainstreaming opens up new opportunities for blockchain technology and is revealing new trends.
Recently, the real estate sector has shown interest in blockchain technology because it opens up the potential for fractionalized ownership, cryptocurrency-backed mortgages and other unique ownership, financing and payment models.
Here are a few real-estate-oriented blockchain projects. They will integrate cryptocurrency payments, decentralized finance, and nonfungible tokens.
Propy
Propy is the most prominent real estate-focused protocol on the cryptocurrency market. It’s focused primarily on automating home purchases and making closings faster and more secure.
Propy was the first company to launch an NFT real estate in 2021. Propy also made headlines for the recent NFT real estate auction in the United States. After selling Tampa, Florida, for roughly $650,000, Propy earned 210 Ether ( ).
It’s over!
Now is the history of the first NFT real estate auction in the US. We are grateful to all who took part and those who supported us. We are so proud of the winner and can’t wait for you to use the #PropyNFT again! It was a blast! pic.twitter.com/LHfZrNSwTN
— Propy (@PropyInc).
February 10, 2022
Propy NFTs can be used to provide proof of ownership and collateral for crypto-based borrowing or lending.
Milo offers crypto-based mortgages
Crypto holders have to decide which tokens they want to cash out in order to pay for a mortgage. This is because there are very few options to pay a cryptocurrency mortgage.
Milo, a Miami-based fintech startup, claims it offers the first “crypto mortgage”. Customers can use Bitcoin ( BTC) to secure a 30-year loan.
The service will be available to American and International customers who are looking to buy real estate in the United States once it is launched.
Although the company has processed some loans in its early access stage, interested parties are encouraged sign up to a waitlist.
Related: Blockchain allows enterprise business models in Metaverse
DeFi: Home equity is gone
Several projects that emerged in 2022 are evidence of the rising popularity of real-estate-focused projects within the blockchain ecosystem.
Vista Equity, a newly launched project, aims to become the first peer-to–peer marketplace for NFT assets that are real estate-backed.
NOW AVAILABLE! Consumers now have financial freedom by having their home fully tokenized. Real estate-backed NFTs can now be purchased by investors 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 who own their home outright to access the equity in their homes via tokenization. Token holders will then be able sell a fraction of the equity as a fractionalized NFT, according to the company.
Tokenization is a way for investors to easily invest in real property.
QuantumRE, a similar project, is just beginning. QuantumRE, like Vista Equity, aims to connect homeowners and investors in order to provide them with debt-free financing. Investors get residential real estate.
QuantumRE assists homeowners in originating Home Equity Agreements. These financial tools allow them to receive a lump sum of cash for their equity without any monthly payments, interest, or additional debt.
You can either sell the house, refinance or renew the agreement. QuantumRE supports secondary trading platforms for HEAs by creating liquidity and a trading platform.
QuantumRE stated that the platform will offer the first fractionalized HeAs in Q1 2022.
Interesting side note: QuantumRE and Vista Equity are both launching products on the Algorand Blockchain. They cite the network’s high processing speeds and low gas costs as reasons for launching their products.
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These views and opinions are the author’s and do not necessarily reflect those of Cointelegraph.com. You should do your research before making any investment or trading decision.
