According to a press release by Vesta Equity on Thursday, April 8, the Algorand blockchain platform will serve as the backbone of its modern solution for residential property financing and investing that aims to disrupt a decades-old industry by opening up the possibility for homeowners to convert their equity into digital assets.
Vesta Equity, based in Toronto, Canada, connects property investors to homeowners with the tools and marketplaces to seamlessly transact.
It provides homeowners with the tools to control their home equity outside of the traditional home equity financing options. Through tokenization and Vesta Equity’s Property Marketplace, homeowners and investors will be able to deal directly with each other without using intermediaries that carry burdensome costs, one-sided terms, and risks.
Under this new collaboration, Vesta will leverage Algorand to further disintermediate the numerous parties involved in the traditional home equity and borrowing space. All the core functions of this home equity marketplace will on Alogrand and Alogrand-based USDC be used for settlement.
Vesta’s real estate tokenization services will be available in the market by September 2021, initially in California for homes owned in full and then expanding across the US and North America. According to the company, this approach of coupling tokenization with smart contracts will enable homeowners to sell a portion of their homes to investors while retaining their residency. Property investors will have the freedom and ease of access to build and manage a portfolio of property types across geographies and partake in property appreciation with 100% asset transparency.
The Algorand blockchain technology will ensure that all the data that is part of the process to be readily available and verifiable. W. Sean Ford, COO of Algorand, commented:
“Vesta Equity and Algorand have a shared vision of how blockchain enables the creation and exchange of value in a more efficient, transparent, and secure manner. By expanding opportunities for homeowners as well as investors, Vesta Equity is at the forefront of creating new, more accessible market opportunities by bringing participants together through Algorand’s technology. We are excited to support Vesta Equity as they leverage the core principles of blockchain to redefine the real estate equity market.”
Michael Carpentier, CEO & Co-Founder of Vesta Equity, stated:
“We have become a society of debt, but that journey needs to shift to create a more prosperous future for all. At Vesta, we believe the application of the right technologies holds the answer. Our partnership with Algorand reflects this because of their superior performance, flexible architecture, low transaction fees, and scalability of its transactional performance.”
If you found this article interesting, here you can find more Blockchain and cryptocurrency news