Chainlink has partnered with LaProp a tokenized real estate platform to enable the former to automate rental payouts to token holders with high security and cost-efficiency.
The Latin American property market will be served by a tokenized real estate platform powered by decentralized oracle network Chainlink. LaProp will allow investors to purchase tokenized shares in a variety of real-world properties in exchange for a part of the rental income.
LaProp plans to use Chainlink Keepers’ node operators’ track record of collecting billions of dollars in DeFi market investments. The BNB Chain’s decentralized automation service performs operations for smart contracts, and in this case, it will automate safe rental payouts to token holders.
The platform aims to provide retail investors with access to real estate that would otherwise be unavailable due to the enormous amount of capital required to enter property markets in the past.
Rent paid by tenants will be automatically dispersed among multiple token holders of the particular property thanks to Chainlink’s capacity to execute smart contract activities. Payment terms and schedules can be customized for each property as well.
Tokenized real estate
The concept of tokenizing real estate ownership isn’t new, but the promise of a tried-and-true solution to manage rental payments and property ownership could pique investor interest again.
As a handful of tokenized real estate ventures that lay the framework for this realization struck turbulence about a year ago, dreams of blockchain-powered real-estate ownership looked uncertain. As a result, industry analysts have thrown doubt on the sectors’ future mergers.
While blockchain-powered platforms and services have flourished in other industries, the tokenized real estate market has yet to take off, with only a few operational platforms that allow users to obtain property ownership through tokenized shares.
Lofty AI, a Web3 commercial solution, comes closest to LaProp’s Chainlink-powered platform. Lofty AI allows users to invest in listed properties and obtain shared ownership. This enables access to governance decisions as well as a share of rental revenue, similar to what LaProp wants to do.
Propy, a “proptech” startup, made headlines in early 2022 when its own token witnessed huge gains. The company enabled the first-ever property nonfungible token (NFT) auction in the United States, selling the token for 210 Ether (ETH). It resulted in the sale of TechCrunch founder Michael Arrington’s apartment in Kyiv, Ukraine’s capital.
Other projects have centered on assisting potential property investors in obtaining funding using their cryptocurrency holdings. Milo, a fintech startup, introduced a service in January 2022 that allows consumers to get 30-year mortgages by using Bitcoin as collateral.