UPRETS Insight | The Second New Wave for Digital Investment in Real Estate: Stable Coins & DeFi
Digital securities like cryptocurrencies came as a wave of digital investment in real estate. But their instability or volatility was previously a big problem. It is difficult to convert a physical asset into the digital form as it comes with many complications. Because state agencies would maintain the title records of real estate properties. When you exchange funds for digital securities of the asset, they needed to be recorded in the registries. Till today, no government is involved in running the blockchain. Now, it is time for you to say goodbye to the non-custodial digital securities. The integration of stable coins & DeFi has come as the second new wave for digital investment in real estate. The stable coin has become a sensation in the digital securities world as well as in the real estate.
The real estate digital securities will use blockchain to perform the transaction that gives some value and do something with the real estate and make the contracts legal. Recently, the multi collateral version of the DAI stable coin was released by MakerDAO. FACTOR-805 digital securities are the first real-world asset that can be digitalized and have distributions paid DAI stable coins. DAI is the 16th business volume crypto that is attached to the US dollar and built on the decentralized blockchain of Ethereum. This second new wave for digital investment in real estate will revolutionize the real estate sector, as it will add new benefits to the cryptocurrencies community.
No Need to Possess Centralized Records Any More
Property management would establish a contract between the property manager and the landlord of the property. The landlord would pay a small amount to the manager that he generates from the property. The contract would exist between the manager and landlord, wherein blockchain is an ideal fit. The rights that a person owns on the property can be used as collateral for a stable coin. The other best solution you can have is to hold rental rights. The tenants and landlords must establish a contract that is valid before law though it does not have a track centrally. If you hold the right to rent the property for the coming 25 years, which would be the current value of the asset, you can track the perpetual right on the contract.
What Makes Stable Coin So Popular?
The main reason for embracing stable coin instead of trading the rights is that the coin is liquid and less risky. The companies are releasing digital securities, which are allowing the investors to use stable coins to pay and also receive interest. It becomes easier for onboard an investor with stable coins. The Ethereum based stable coins offer many advantages, such as stability and efficiency. Today, the decentralized stable coin is unlocking a myriad of benefits in the financial ecosystem. The difference with the regular cryptocurrency and a stable coin is that they work with the help of blockchain, contrarily, which are linked to the physical asset.
The asset can be anything, be it gold or real estate. It is transparent and has e the rarity in ownership. Similar to the blockchain and cryptocurrencies, even stable coin is creating waves. With the stable coins gaining immense popularity, it is being used in real-estate. These are highly efficient, fast, and have less risk rate. The stable coins created a shift in the market as it is tied to the assets in the real-world. With 180 currencies globally, everyone uses the currency of their respective country to buy goods and avail services. Stable coins are the digital money that would be similar to the fiat currency and are stable. You can collateralize the stable coins to the value of the asset. The stable coins are considered as 1:1 ratio, such as with US dollars and Euros. You can also trade on the exchanges. The best thing about stable coins is that these are transparent, secure, immutable, quick, low fees, and offer high privacy.
Conclusion
The second new wave for digital investment in real estate has definitely arrived. The commodity-collateralized stable coins are a tangible asset that has some value, which many cryptocurrencies do not have. With the increase in commodity value, people can reap a lot of incentives. It opens up the possibilities even for common people for investments globally and that too, without having to centralize recording the transactions. A few platforms like UPRETS are making it easier for everyone to invest in real estate using stable coins.
About UPRETS:
UPRETS is a platform focused on simplifying investment in real estate by advising on and digitalizing assets and securities.
We are dedicated to providing a convenient, legally compliant and advanced real estate digital securitization platform for property developers, asset owners and investors globally.
By utilizing our UPRETS platform, real estate developers and assets owners can create digital securities for their properties, providing investors with various low-barrier, secure and convenient forms of investments.
Backed by a publicly listed real estate conglomerate (NYSE:XIN) and our award-winning, patented blockchain technology, Xbolt, we bring a network, experience and luxury assets to the platform.
For more information about UPRETS,
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