Propy, a real-estate blockchain company, announced today that it has launched the first real estate-backed NFTs in the U.S.
The company will auction two residential properties in Florida on February 8th as part of its ambitious goal to launch a real-estate NFT-ing service.
Propy’s using NFTs to tokenize properties in the U.S.
Last year, real-estate platform Propy facilitated the first-ever sale of an apartment via NFT. Michael Arrington, the founder of TechCrunch and a crypto investor, auctioned his Kyiv apartment as a real estate-backed NFT in a bid to show the potential use cases for the asset class.
Propy has been an active participant in the crypto market, facilitating blockchain-based real-estate purchases from 2017, but this marked the first time it tokenized a property in the form of an NFT.
And now, the company is bringing the first real-estate-backed NFTs to the U.S.
“NFT sales reached $4 billion in December 2021 and real-world assets will soon represent a significant portion of that market,” said Natalia Karayaneva, the CEO of Propy.
Karayaneva told us that the company has developed all the necessary smart contracts and a compatible legal framework that will enable it to tokenize any real estate property in the United States. The company plans on implementing this globally, providing a single framework for purchasing real estate using blockchain technology.
Propy’s provides agents and brokers with an all-in-one platform that can handle the entire process of real estate sales—from listing to closing the deal. The platform uses bank-level security to manage money transfers, requiring multiple verifications before a transfer occurs. Transactions can be handled in dollars, cryptocurrencies, or in the form of non-fungible tokens (NFTs) and the record of the purchase is placed on an immutable blockchain.
According to the company, this minimizes the cost for buyers and streamlines the purchasing process, enabling them to buy a property in just a few minutes.
The potential of tokenizing real-estate, especially in the form of NFTs, that Propy has demonstrated was recognized globally. The company received the Technology Pioneer award at the World Economic Forum and has raised over $16 million in venture capital.