By Sean Parsons
At the intersection of real estate and finance, a watershed moment has arrived – the world’s first crypto-based mortgage for a single-family investment property in South Carolina. A homebuyer secured the property by financing half of the purchase with a DeFi loan at an 8% interest rate over a two-year term, with the total closing cost amounting to a mere $10.
This transaction highlights a growing trend – the tokenization of real-world assets (RWAs) on the blockchain to access DeFi capital markets. The proliferation of RWAs on the blockchain represents a seismic shift for both traditional and decentralized financial markets.
Understanding Real-World Assets (RWAs):
RWAs are digital representations of physical assets ranging from prime real estate to collectible items like luxury handbags. By creating these digital counterparts on the blockchain, individuals can seamlessly tap into the $80 billion DeFi economy – selling or borrowing against their physical assets with ease. This concept draws parallels with traditional commodity trading, where warehouse receipts represent underlying assets.
Every year, over 30 million…
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