First real estate investment platform roof announced its first real estate sale via the Ethereum blockchain.
The transaction was made possible by Roofstock onChain (ROC), its web3 subsidiary and real estate brokerage alternative powered by a non-fungible token (NFT) marketplace built by Origin Protocol.
While crypto sales of physical real estate have been sold before, this sale is the most crypto-native real estate sale to date. It is also the first real estate sale that has been settled instantly on an NFT market.
See also: The 10 most expensive NFTs bought by celebrities
The sale used Circle’s USDC stablecoin instead of volatile crypto assets, removing a key barrier to Web3 adoption.
“Removing middleman fees is a cornerstone of web3, and it’s just the beginning,” says Matthew Liu, co-founder of Origin Protocol. liquid markets for these traditionally illiquid assets.”
“Buy a house with just one click”
When most people hear the term NFT, they think of crypto-rich 20-year-olds with a picture of a monkey on their Twitter profile. Roofstock and Origin Protocol extend the use case for non-fungible tokens beyond what is commonly seen, eliminating the most common pain points in real estate brokerage.
Located in Columbia, South Carolina, the property sold last Friday, October 10, for $175,000. Unlike traditional real estate brokers, ROC transactions are instant and there is no escrow involved.
During the sale, the buyer, Adam Slipakoff, saved weeks of closing time. The seller saved over $5,000 in closing costs.
“I never imagined that I could buy and finance a home with the click of a button, rather than going through the traditional, long and tedious mortgage and settlement process. I’m grateful that Roofstock has paved the way for the rest of the market,” says Slipakoff.
Instead of waiting months for underwriting, valuations, title searches and deed preparation, Slipakoff was able to purchase a fully insured, ready-to-let property with the click of a button, he added.
Ownership of housing was transferred entirely through smart contracts, using the NFT marketplace built by Origin Protocol. NFTs in the market are associated with a limited liability company that holds title to each respective house. Additionally, Roofstock onChain uses the Ethereum blockchain for home brokerage. In partnership with Teller Protocol, Slipakoff was able to secure financing for the property through a pool of bespoke DeFi loans.
“For Roofstock, this is a major milestone in providing a radically simple way to buy and sell single-family rental properties (SFRs) with just one click using web3 technology,” said Geoff ThompsonChief Blockchain Officer at Roofstock onChain.
“We are thrilled to provide homebuyers with access to various Web3 financing options, ushering in a new era of real-world asset ownership through our partnership with Teller,” added Sanjay Raghavanhead of web3 initiatives at Roofstock onChain.
Origin Protocol, founded in 2017, has fueled notable NFT sales like 3LAU’s $11.7 million record music sale, Charlie Bit My Finger viral video sale, as well as Paris Hiltonfrom the series “Past Lives, New Beginnings”.
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