Propy partners with Abra to provide crypto-backed home loans

Fry Electronics TeamApril 28, 2022
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Propy partners with Abra to provide crypto-backed home loans

Blockchain real estate platform Propy has partnered with Abra to enable customers to obtain home loans with their cryptocurrency holdings, potentially expanding the financial use cases of digital assets.

Propy clients can now pledge digital assets as collateral for their property purchases through Abra Borrow, a cryptocurrency lending and borrowing service. Crypto-collateral pledged to Abra will be used to borrow US dollars, which can then be used for home purchases.

The Propy blockchain records the entire transaction process and serves as a technical and legal framework for buyers and sellers. According to Propy, the blockchain records the transaction, whether it’s in crypto, non-fungible tokens (NFT), or traditional fiat currency.

Abra is a crypto-focused wealth management platform that has been around since 2014. The platform allows users to generate income from their cryptos, borrow dollars against their holdings and trade digital assets. Abra has received backing from several major companies, including American Express’ venture capital arm, Amex Ventures, which contributed to its $55 million Series C funding round in September 2021.

While early crypto investors have amassed significant fortunes over the years, their access to traditional financial products like mortgages remains limited. Decentralized finance or DeFi applications are trying to fill the gap. As Cointelegraph reported, a new homeowner in Austin, Texas, recently purchased a property through a mortgage from USDC.homes, a crypto lending service based on Circle’s USD coin (USDC).

Related: Web3 solutions aim to make the American real estate market more accessible

Fintech startup Milo is also offering crypto mortgages to homebuyers looking to use their Bitcoin (BTC) as collateral. Meanwhile, in September 2021, decentralized mortgage lender Bacon Protocol launched a program that allows homeowners to exchange a lien on their property for an NFT, which represents a percentage of the property they purchase.