Propy, a trailblazing real estate platform, is introducing crypto-backed loans for purchasing properties, setting a new standard in real estate transactions. The innovative approach allows buyers to use Bitcoin (BTC) or Ether (ETH) as collateral to secure a loan for acquiring tokenized real estate. This groundbreaking sale includes a condominium in Honolulu, Hawaii, starting at $250,000, with a process designed to be as seamless and efficient as possible.

Buyers can provide 100% collateral in cryptocurrency and pledge the property itself to access a two-year loan at a 10% annual interest rate. The benefits are multifold: avoiding taxable events, maintaining crypto holdings, and leveraging the flexibility to repay in BTC, ETH, or USDC. However, the crypto market’s volatility adds risk; if the value of the collateralized cryptocurrency drops by more than 50%, a margin call may result, with potential liquidation and property auctioning.

Propy’s blockchain-based system also tokenizes real estate, streamlining transactions and ownership transfers. Once tokenized, the property is linked to a Limited Liability Company (LLC), with ownership updated instantly upon repayment. Blockchain’s efficiency replaces traditional lengthy loan approvals and high legal fees with rapid, transparent processing.

Propy CEO Natalia Karayaneva emphasizes that this development is a step toward creating a liquid, efficient real estate market. The firm uses Ethereum Layer 2 technology to support swift settlement times and enable both crypto-native and traditional buyers to navigate the process effortlessly. Even non-crypto-savvy clients benefit from the technology’s backend integration, which improves transaction speed and transparency.

While crypto-backed deals currently constitute about 5% of Propy’s transactions, the introduction of loan products could significantly increase adoption. Propy has already made headlines with unique ventures, such as auctioning a 17th-century Italian mansion and converting a TechCrunch founder's apartment into an NFT.

Propy’s escrow services, developed in collaboration with Coinbase, provide added security and convenience for crypto buyers. The tokenized ownership model also allows future buyers to transfer ownership seamlessly, with Know-Your-Customer (KYC) compliance ensuring legal recognition. Buyers can “unwrap” their tokenized property into traditional ownership if desired.

By integrating blockchain technology into real estate, Propy envisions a world where asset swaps between real estate and cryptocurrency are as simple as a digital transaction. This innovation could unlock liquidity in the $300 trillion global real estate market, marking a turning point in how we buy and sell property.