Propy launches NFT platform in US, allowing real estate to be bought as an NFT – TechCrunch

Startups

Last year, we discussed how early blockchain startup Propy planned to use the technology to facilitate real-world real-world sales by introducing the concept of smart contracts. It went on to actually sell an apartment as an NFT, using the NFT to effectively stamp the legal process. However, that apartment was in Ukraine. Today it is launching the whole concept in the US, a very different cake.

Today, it is expanding the whole process further by launching real estate-backed NFTs in the United States, working on the technological and legal framework to literally convert real estate into NFTs.

The technology will be marketed to owners and brokers, with Propy auctioning two Florida properties on Feb. 8 as part of a real estate NFTing service.

Here’s how it works: Propy says the record of the purchase is placed on the immutable blockchain and gives access to the legal documents indicating ownership. This lowers costs for buyers and makes the buying process fast, simply by letting them buy a home in minutes. Propy’s plan is to scale this offering globally and provide a single framework for buying real estate using blockchain technology.

If successful, the buyers will get a Florida-based investment property, owner of a US-based entity that owns the property, whose ownership rights are tied to an NFT. It is not fractional ownership and becomes a DeFi asset against which to borrow.

Natalia Karayaneva, CEO of Propy Co-Founder, said: “At Propy, we have developed all the necessary smart contracts and a compatible legal framework that enables real estate tokenization in the United States. NFT sales reached $4 billion in December 2021, and real-world assets will soon represent a significant portion of that market.”

In 2021, Propy sold an apartment in Ukraine through NFT. To date, it has raised more than $16 million in venture capital and is backed by the likes of Tim Draper and Michael Arrington.

Smart contracts are increasingly becoming legally admissible records, with Vermont and Arizona both enacting such legislation.

In terms of competitors, Propy has a few. RealT is a fractional real estate investment platform that allows investors globally to invest in the US real estate market through a token-based blockchain network. SafeWire, formerly SafeChain, addresses the wire fraud challenges faced by real estate companies, agents, customers and industries as a result of hacker intervention. However, this has been taken over by ClosingLock.

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