Investors can now purchase home fractionalized NFT sales.
Vesta Equity, a real estate startup, has teamed up with the Algorand blockchain for its NFT marketplace.
Using the marketplace, homeowners can leverage and sell a slice of equity with digital collectibles.
“Imagine a world where, with a few clicks of your mouse, you can access the entire accumulated value of the equity in your home without incurring debt or selling and moving,” CEO Michael Carpentier said in a statement.
A fractional NFT is an NFT divided into smaller fractions. This means that numerous individuals can claim ownership of a piece of the same NFT. They do not confer residential rights and are packaged as a security and registered as such with the Securities and Exchange Commission.
NFTs are a relatively new concept. And while many people have been able to cash in and make a small fortune, the spike in NFT campaigns has also led to a massive leap in tech-related lawsuits.
The SEC announced a probe into how NFTs are being utilized to raise money like traditional securities. According to The National Law Review, the SEC is particularly interested in information about fractional NFTs.
“Given the breadth of the NFT landscape, certain pieces of it might fall within our jurisdiction,” Commissioner Hester Peirce said in an interview with Coindesk TV. “People need to be thinking about potential places where NFTs might run into the securities regulatory regime.”
However, the real estate startup claims to address the issue of housing affordability while eliminating barriers to the market for all investors.
Vesta Equity believes they are the bridge between real-world, tangible assets and established values with the advantages of digital distributed technology.
“Vesta Equity is totally innovating the home equity market,” said Imran Rahaman, COO of Vesta Equity. “With today’s launch, we become an example of a company using blockchain for what it was designed: to remove friction from traditional exchange of value systems, and to open up new financial opportunities for people everywhere.”
