Real estate firm Propy unveils BTC-backed mortgage service

Propy, a real estate tokenization company, is introducing cryptocurrency-backed mortgage services to real-world assets, with the aim of changing the way people buy real estate.

According to a press releasePropy has announced the first-ever crypto loan that will allow potential real estate buyers to access on-chain loans to purchase property in Hawaii.

Bitcoin (BTC) and Ethereum (ETH) holders will be able to use their digital assets as collateral to purchase real estate. This cryptocurrency-backed mortgage service marks the first step in Propy’s mission to make the $300 trillion real estate market more liquid and tradable.

“This is not only a milestone; it’s a glimpse into the future of real estate,” said Natalia Karayaneva, CEO of Propy. “We demonstrate how blockchain technology can simplify home buying, replacing the traditionally lengthy loan approval process with an instant and efficient solution.”

Propy claims that this new financing option will allow customers to leverage their cryptocurrency to purchase real estate while retaining ownership of their digital assets.

Loans will be double-collateralized, with ownership representing 50% of the collateral and BTC or ETH covering the remaining 50%. The interest rate is set at 10%.

Propy’s first offering under this service is a condominium in Honolulu, Hawaii. The property will be listed for sale on January 29, 2025, with an asking price of $250,000. Holders of BTC and ETH can use their assets as collateral to access a loan to finance the purchase, the company announced.