As NFTs increase their impact on various business sectors, now the real estate business looks ready to embrace the new opportunities brought by DeFi and NFTs.
As Cointelegraph reports, “the real estate sector has shown interest in technology because it opens up the potential for fractionalized ownership, cryptocurrency-backed mortgages and other unique ownership, financing and payment models.”
There are already some interesting projects focused on the real estate that aim to integrate decentralized finance, cryptocurrency payments and nonfungible tokens (NFT) to the sector.
Propy is the largest of these protocol projects. It aims to make automating home buying and making the closing process faster and more secure. It also became the first company to launch a real estate NFT in 2021, when it sold a property in Florida for 210 ETH. Cointelegraph points out, “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 cripto-based borrowing and lending.”
Milo is a protocol focused on mortgages. It is a Miami-based fintech startup that claims to offer the world’s first “cripto mortgage” by allowing customers to use Bitcoin as collateral to qualify for a 30-year loan. When it launches it will provide a mortgage service for American and international customers buying real estate in the USA.
Other projects include Vesta Equity. Its goal is to become “the world’s first peer-to-peer marketplace for real estate-backed NFT assets.” It also wants to allow homeowners who own their homes outright to tap into the equity in their homes through tokenization. Furthermore, according to the company, token holders would then be able to sell off a portion of it as a fractionalized NFT.
QuantumRE is a similar project that is just getting started. Its goal is to link homeowners with investors to help provide homeowners with access to debt-free financing, while investors get access to residential real estate. Both Vesta Equity and QuantumRE are on the Algorand , “citing the network’s fast processing speeds and low gas fees when compared to the Ethereum network.”
