Crypto investors now have more options to buy real estate without having to directly sell their digital assets.
Blockchain real estate platform Propy is partnering with Abra on a mortgage product that will allow customers to obtain home loans using their crypto holdings, potentially expanding the financial use of digital assets.
Propy customers can now place digital assets as collateral when purchasing property through Abra Borrow, a cryptocurrency lending and borrowing service. Cryptocurrency collateral pledged to Abra is used to borrow US dollars, which can then be used to buy a house.
The Propy Blockchain (PRO) records the entire transaction process, serving as the technical and legal basis for buyers and sellers. According to Propy, a blockchain records a transaction, whether it is in cryptocurrency, non-fungible tokens (NFTs), or traditional fiat currency.
Propy founder and CEO Natalia Karayaneva said access to DeFi and crypto mortgages is “a key component to making buying and selling real estate with cryptocurrencies and NFTs viable for the wider population.” As a next step, the company is planning an “real estate sale in NFT” with instant mortgage approval.
Abra is a money management platform focused on the crypto industry that has been around since 2014. The platform allows users to earn income from their cryptocurrency, borrow dollars against their assets, and trade digital assets. Abra has received backing from several major companies, including Amex Ventures , the venture capital arm of American Express, which contributed a $55 million Series C funding round in September 2021.
Although early crypto investors have amassed a significant fortune over the years, their access to traditional financial products such as mortgages remains limited. Decentralized finance applications, or DeFi, are trying to fill this void. As previously reported, a new homeowner in Austin, Texas recently purchased a property with a mortgage loan from USDC.homes , a crypto lending service based on Circle’s USD Coin (USDC) stablecoin .
Fintech startup Milo is also offering crypto mortgages to property buyers looking to use their bitcoin (BTC) as collateral. Meanwhile, decentralized mortgage lender Bacon Protocol (BACON) launched a program in September 2021 that allows homeowners to trade the lien on their property for NFT, which is a percentage of the property they buy.
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