Real estate blockchain company Propy will launch the first real-estate-backed NFTs in the United States. The technology will be available to interested owners and brokers, and the company will auction two residential properties located in Florida as part of its real estate NFTing service.
Staring in the art world. non-fungible tokens, or NFTs, have entered the luxury real estate world got its introduction: A brick-and-mortar home in Westchester County, New York that’s listed for almost $4.5 million has its own accompanying NFT listing.
In simple terms, an NFT is the original version of a duplicatable piece of digital information. So, a person who owns an original piece of art as an NFT owns a bit of code that verifies ownership. Other people can create counterfeits, but only the NFT owner holds the original.
Blockchain money, NFT art and crypto-digital homes might seem only peripherally related to the real-life real estate market, and for now that’s true. But several real estate and cryptocurrency experts say the process of transferring physical property is compatible with NFTs and the future world, and some also forecast a future where transferring property rights might come with the option of signing over mineral, water, air and digital rights.
Propy has developed the technological and legal framework that allows turning real estate properties into non-fungible tokens and selling them over the Internet. The record of the purchase is placed on the immutable blockchain and provides access to the legal documents signifying ownership. This minimizes costs for the buyers and streamlines the purchasing process by letting them buy a property in a few minutes.
Propy hopes to implement this globally, providing a single framework for purchasing real estate using blockchain technology.
According to a statement,“At Propy, we’ve developed all the necessary smart contracts and a compatible legal framework that allows tokenizing any real estate property in the United States,” says Natalia Karayaneva, CEO of Propy. “NFT sales reached $4 billion in December 2021 and real-world assets will soon represent a significant portion of that market”.
In 2021, Propy facilitated the first-ever sale of an apartment via NFT in Ukraine. Propy has raised over $16 million in venture capital and is backed by the likes of Tim Draper and Michael Arrington.