Crypto real estate RWA project Propy is a pioneer of Web3 and a leader in real asset ownership and custody services authorized in the United States. On October 3, it announced the launch of its innovative Propy crypto custody service. By leveraging the Coinbase Prime platform and services, this revolutionary solution will change the way Bitcoin, Ethereum or USDC is used to protect and complete high-value transactions (such as real estate transactions and M&A transactions).
In 2023, more than 50 million Americans hold or use cryptocurrency, and more than 400 million wallets around the world are actively using cryptocurrency. As the next generation of wealth grows on-chain, these investors increasingly need services to use their wealth for real-world transactions. According to Redfin research, in 2021 alone, 12% of first-time American homebuyers used cryptocurrency to purchase real estate in the $43 trillion U.S. real estate market.
Propy’s new crypto custody service enables Bitcoin and Ethereum holders to securely hold their crypto funds using the Coinbase Custody solution while a transaction is in progress, eliminating the need to convert to fiat early on, which could trigger capital gains taxes or put them at risk of having to repurchase their crypto assets again if a transaction fails.
“The advantage of Propy Crypto Escrow is its ability to safeguard funds during the closing process, providing unprecedented security for buyers and sellers,” said Natalia Karayaneva, CEO of Propy. “As the first licensed U.S. title company to operate in the cryptocurrency space, we are committed to providing a seamless and protected closing experience. With Coinbase’s trusted custody solution, we add an extra layer of security, ensuring funds are safely held until the final stages of the transaction.”
Propy Crypto Escrow is tailored for Bitcoin and Ethereum holders who want to use cryptocurrency for high-value purchases, such as real estate. Typically, real estate transactions require a 30-day process, during which buyers may be reluctant to redeem their cryptocurrency in advance, especially if the seller prefers to receive US dollars at the closing of the transaction. Redeeming cryptocurrency too early may result in capital gains taxes, or if the transaction does not go through, there will be additional costs for buying back the cryptocurrency later.
By holding cryptocurrencies securely in escrow, Propy allows buyers to redeem cryptocurrencies only at the closing of a property transaction. This minimizes risk and simplifies the entire process. Licensed title and escrow companies in the U.S. often lack the infrastructure to accept and manage escrowed cryptocurrencies, but Propy’s choice of Coinbase Prime bridges this gap by ensuring secure escrow and smooth conversion to fiat currency at the closing of a transaction.
Propy's crypto custody service is powered by Coinbase Prime, coupled with Propy's advanced closing protocol, and Propy's title and custody facilities, create a secure and transparent framework for processing high-value transactions paid in Bitcoin, Ethereum or USDC. This process mirrors traditional real estate transactions, but is seamlessly adapted to the Web3 world, providing users with a compatible and user-friendly experience.
About Propy
Propy is the leading AI and blockchain-driven real estate platform that simplifies the buying and selling of real estate and moves real estate transactions from offer to close securely and efficiently online. In 2017, Propy launched smart contracts for real estate transactions, making the transaction process faster, easier and more secure for purchase participants, while also helping real estate agents and title companies migrate to the blockchain. Propy's SaaS platform features automated notifications, e-signatures, analytics and compliance tracking to ensure that real estate transactions are completed in a seamless, fast and cost-effective manner.
At Propy, it continues to disrupt the traditional real estate market by solving inefficiencies such as high transaction costs and long processes through blockchain technology, making property transactions easier, safer and more transparent. In addition, the PropyKeys platform has minted more than $10 billion worth of U.S. homes in its ecosystem, and it claims to be on track to bring 1 million homes on-chain by 2025. As a leader in modernizing real estate in the digital age, Propy is pushing the boundaries of innovation.
