Propy, a real estate firm, is introducing a novel approach to home buying by allowing buyers to use their bitcoin (BTC) or ether (ETH) as 100% collateral for loans. This innovative method is being showcased with the sale of a $250,000 condominium in Honolulu, Hawaii, set for January 29. The loan, which has a two-year term and a 10% annual interest rate, can be paid back in BTC, ETH, or USDC. If the value of the cryptocurrency drops by more than 50%, the buyer faces a margin call, potentially leading to liquidation of their crypto assets and resale of the property. Conversely, if the crypto value doubles, the loan could be paid off through the gains. Propy’s use of blockchain technology aims to streamline real estate transactions, reducing settlement times and enhancing liquidity. The firm has tokenized the property, a process that takes about two weeks, involving setting up an LLC and creating a token. Despite the potential, crypto-native deals currently make up only 5% of Propy’s business volume.
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