Diary real estate financing with NFT as collateral

Diary real estate financing with NFT as collateral

As the popularity of NFTs continues to grow, many are trying to find use cases for this technology to justify the interest and price of these tokens in the market. A day laborer from Porto Alegre found an excellent application for her NFTs: She managed to use a non-replaceable token to fund the purchase of an apartment.

According to information from G1 Docelina Severo, The 49-year-old day laborer managed to fulfill the dream of owning his own house in a very interesting way, using a new type of financing: a credit that uses digital property as collateral.

Docelina had problems with the traditional banking system when it came to financing a real estate. This is because she is a day laborer and although she has an income of about R$3,000 a month, it is not an income that she can prove is approved for financing, as she told Tribuna Hoje.

“As a day laborer, I ultimately don’t have the traditional means to prove income, such as a salary. I have always faced barriers to accessing bank financing, mainly because I have not saved any value that could be given as collateral,” explains docelina.

The innovation enabled the acquisition, which creates a legal-tech arrangement to associate an NFT token, registered on the Blockchain, with the registration of any property, which, once digitized, is linked to the token that it starts to represent.

The solution, according to the information, makes it possible to digitize the registration of any property, which, once on the blockchain and linked to a token, starts to represent it in an immutable way.

“Thanks to the solution, I was able to finance my house. This is invaluable to me and my children.”added Docelina.

This made it possible for her to carry out the financing whereby the NFT was given as collateral, which traditionally takes place via real estate.

This is an interesting use case for NFTs, especially as it shows a possible democratization and facilitation of the financial system for those who really need it, and shows that technology can go beyond just serving as a display for those who need it a lot. have money left over.

“The process allows people who generally do not have access to credit to purchase their real estate on digital property. At the same time, those who lend will have the opportunity to do so much faster and with the same security as before in terms of collateral. All this with much lower transaction costs and fees, including transaction time in a matter of hours instead of weeks.”emphasized Jonathan Doering Darcie, director of netspaces in an interview

It’s still a niche market, but it’s enough to show the power blockchain can have in improving access to personal financial sovereignty in everyone’s everyday lives.

Source: Live Coins