More On: NFT
The new marketplace joins a growing list of firms that are attempting to include real-world NFT use cases.
A real estate firm has launched a service that allows homeowners to sell fractionalized NFTs to part with a portion of their wealth.
Vesta Equity has chosen the Algorand blockchain for its NFT (non-fungible token) marketplace, which it claims is the first peer-to-peer exchange that allows homeowners to leverage and sell a piece of equity through digital collectibles.
"Imagine a future where you can access the whole cumulative worth of your home's equity with a few mouse clicks, without incurring debt or selling and moving," CEO Michael Carpentier said in a statement.
The fractionalized NFTs are packaged as a security and registered with the Securities and Exchange Commission, despite the fact that they do not confer residential rights. Holders can develop a portfolio of real estate assets to supplement typical stock investments, according to Carpentier.
For crypto firms, determining whether or not their product qualifies as a security and satisfying the SEC's regulatory requirements has been a source of confusion.
A class action lawsuit was filed last year against Dapper Labs, the company behind famous NFT collections including NBA Top Shot Moments, alleging that some of the digital collectibles were operating as unregistered securities.
Vesta finds no gray space in the SEC's view, and Carpentier claims the "regulatory landscape" isn't "uncertain."
He explained, "The SEC's view on fractionalized real estate assets is quite well established." "They consider them securities, and their sale must be done in accordance with SEC regulations."
The marketplace is the latest in a long line of NFT initiatives seeking for real-world applications.
Propy, a blockchain business, auctioned a Florida property as an NFT for more than $653,000. Propy CEO Natalia Karayaneva told Blockworks that the company's services might "become the industry standard."
"In December 2021, NFT sales hit $4 billion, and real-world assets will soon account for a considerable share of that market," Karayaneva added.
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