Digital Transformation in the Real Estate Industry: The Future of Buying Houses with Bitcoin Has Arrived

In a recent podcast interview, a real estate technology innovator shared her bold vision for the future of the real estate industry. As a professional with 15 years of real estate development experience and also a software engineer, this innovator has deep insights into the pain points in traditional property transactions. She stated: "In the next decade, you may only need a few clicks to purchase properties online from around the world, with the entire process being quick, low-cost, and free from fraud concerns." Although this vision sounds quite futuristic, in her view, such transformation has already begun to emerge under the dual impetus of technological advancement and market demand.

For a long time, the real estate market has been constrained by high transaction costs, lengthy transfer processes, and the ever-present risk of fraud. The traditional home buying process often involves cumbersome contract signing, bank loan approvals, property registration, and other steps, with the entire transaction cycle potentially lasting several months. At the same time, issues such as property fraud, identity theft, and fund transfer scams have caused significant losses for homebuyers, making this market full of uncertainty. With the increase in cross-border property transactions, these risks have also expanded globally. During the digital transformation process, the collision between traditional paper document management methods and new technologies has exacerbated the risks of identity theft and fund transfer, making the market even more uncertain.

To address these industry challenges, an innovative company has emerged. As a dual-expert with a deep understanding of the real estate development ecosystem and the underlying logic of blockchain, the founder leads the team in developing groundbreaking solutions. They have built a decentralized property management system based on smart contracts, achieving multiple innovations through blockchain technology:

• Automation: The system can automatically execute transaction terms, verify ownership and fund flow in real time, significantly shortening the transaction cycle.
• Security and Transparency Mechanism: The distributed ledger technology of blockchain ensures that all transaction processes are open and transparent, preventing information tampering and fraudulent activities.
• Real-time tracking throughout the process: Each transaction step is recorded on the blockchain, allowing relevant parties to check the transaction progress at any time, effectively reducing the risk of human error.

Currently, the platform has processed over $4 billion in transaction volume. Through its innovative property tokenization solution, the platform has successfully made complex cross-border real estate investments as simple as sending an email. From Bitcoin mortgages to property tokenization, this company is reshaping the way the real estate market operates, opening up a whole new era for global buyers.

This innovative company offers two ways to purchase a house to meet different user needs. The first is aimed at users who are already familiar with cryptocurrency; the entire process is very simple. As the founder said: "For users accustomed to using cryptocurrency, as long as they connect their digital wallet and click a few times, they can buy a house, provided that the house has already been converted into a digital asset by us." This method reduces the house-buying process that originally took several months to just a few minutes.

In January of this year, the company launched a new loan product that supports the purchase of Hawaiian apartments using collateralized crypto assets. The starting price for this apartment was 250,000 USDC. Since the entire transaction is conducted on the blockchain, buyers no longer have to go through the traditional 30-day transaction process and can almost complete the deal immediately. By February 2, the property was sold - the buyer obtained a loan through collateralizing Bitcoin to complete the purchase. The founder elaborated on this innovation: "In the transaction we completed last month, a buyer holding Bitcoin was able to bid on the property without needing to sell his Bitcoin. We believe Bitcoin is a great collateral; you can use it to invest in other assets. In this transaction, if you have $250,000 worth of Bitcoin, after successfully bidding, you can immediately get a Bitcoin-based loan without any review and without waiting for the traditional 30-day loan approval from banks, allowing you to become a homeowner right away."

The second method combines traditional real estate transaction processes with innovative technology, suitable for users who still prefer traditional home buying methods. The founder explained: "In fact, the method we are most popular with is still quite traditional. We have dedicated property and custody companies; you need to sign a home purchase contract, and then our AI system will immediately process this contract and start the transaction process. Even at night or on weekends, the transaction can be initiated immediately." This method retains some key steps of traditional home buying, but significantly improves efficiency through technological means.

Buying digitized real estate on this platform has many benefits, the most obvious being fast transaction speed and easy liquidity. The founder emphasized: "The advantage of tokenized assets is that you can buy them immediately, and you can gain ownership of the property in just a few minutes. It is more liquid, so you can also sell it within an hour or a day, just by initiating an auction on our RWA market." This high liquidity fundamentally changes the characteristics of real estate as an investment category, making it closer to the trading experience of other financial assets. In the future, certain RWA trading platforms may support real estate transactions. Currently, these platforms do not require KYC and AML certification, but as regulations adjust, real estate tokenization is expected to become mainstream.

At the same time, the company is also exploring the possibility of fractional ownership in real estate. The founder explained that by further splitting NFTs, multiple buyers can jointly hold a property and divide the rights according to their shares. However, since such transactions fall under the category of securities, it is necessary to file documents with the U.S. SEC.

She pointed out that the process is relatively complex, taking about four months to complete, and the transparency requirements for SEC filing make it more like a small IPO, which incurs higher costs. Therefore, it is more challenging for small properties to implement, but from a technical perspective, it is still feasible. She believes that although the current threshold is high, fractional ownership of real estate will be one of the future development directions of real estate tokenization.

Of course, the company is also continuously optimizing platform features to enhance user experience and meet the rapid changes in market demand. In the future, users will be able to autonomously manage real estate NFTs through the platform or wallet, thereby enhancing control over their assets and further lowering transaction thresholds.

In terms of property management, the company ensures compliance with local laws and regulations, and has established a verification mechanism for property transfer. Users can choose to sell through traditional means, maintaining compatibility with the traditional market to meet the needs of conservative investors; or they can choose to transfer tokenized ownership on the blockchain, achieving fast, low-cost transactions and gaining access to global liquidity opportunities.

In addition, the company has launched an innovative cryptocurrency mortgage model, providing a new option for investors who do not wish to sell their crypto assets. This loan model accepts Bitcoin, XRP, or Ethereum as collateral. According to the founder, "Our most recent transaction used Bitcoin as collateral, a two-year loan with an interest rate of 10%, repaid monthly. It operates similarly to a mortgage, but the main advantage is that there is no lengthy 30-day mortgage approval process, making this model particularly suitable for investors who primarily hold crypto assets, as traditional financial institutions often do not recognize the collateral value of crypto assets."

In terms of repayment, the platform supports repayment in various cryptocurrencies, offering flexible repayment terms. Users can choose to repay early without penalties, while interest rates are dynamically adjusted based on market conditions. To control risks, the platform has implemented comprehensive risk management measures, including real-time monitoring of Bitcoin price fluctuations, establishing a margin call mechanism, providing smart contract automatic liquidation protection, and setting up a professional risk assessment team.

It is worth mentioning that the founder has also proposed a future vision of Bitcoin as collateral for real estate investment. She stated: "I believe that in the future, Bitcoin will become a premium collateral, allowing users to access other asset classes. Just imagine, you could automatically obtain on-chain loans based on your Bitcoin holdings, without credit checks, and without having to go through the traditional mortgage approval process that can take up to 30 days."

This decentralized finance ( DeFi ) + real estate model will make real estate transactions more efficient, more liquid, and provide investors with unprecedented freedom. With the company's ongoing innovation, the real estate market is moving towards a smarter, decentralized new era.

In addition, the company has also deployed a multi-layered security mechanism to prevent fraudulent activities. The founder pointed out: "If fraudulent activities occur, our AI or other means may detect them, and we will report these fraudsters to the FBI and all relevant service agencies according to the current rules of the property industry, and re-record the contracts." This multi-layered security mechanism greatly reduces the risk of fraud in property transactions, providing users with a more secure trading environment.

Looking to the future, the company is confident in the digital transformation of the real estate industry and consistently maintains active cooperation with regulatory bodies and financial institutions to ensure the compliance and scalability of its solutions.

At the regulatory level, the company actively cooperates with government agencies' policy adjustments to promote the legalization process of real estate tokenization. The founder mentioned: "Currently, agencies such as the SEC are studying fractional ownership of real estate on the blockchain and how to allow more citizens to invest, as this is clearly a security. I always advise all real estate operators and owners entering the tokenization field to follow SEC rules and register under Reg D, Reg A, etc."

At the same time, the regulatory environment is evolving in a more positive direction. The founder pointed out: "After multiple dialogues with lawmakers, I have also seen their willingness to actually relax certain securities laws for assets, particularly those backed by real estate and other assets." This shift in regulatory attitude will pave the way for further development of blockchain real estate, enabling more people to enjoy the conveniences brought by this innovative technology.

As blockchain real estate gradually enters the mainstream, institutional adoption is also showing positive signals. The founder pointed out: "About a week ago, the CEO of a certain investment platform tweeted about their platform becoming a platform for purchasing real estate. I believe they are referring to securities, specifically fractional ownership of real estate." This indicates that mainstream financial institutions are recognizing the potential of blockchain real estate and beginning to lay out their strategies, which is a strong impetus for the development of the entire industry.

Although homebuyers still need to go through the traditional process of selecting properties, such as examining communities, visiting homes, and assessing investment returns, the innovation of the company lies in significantly simplifying the transaction process after purchasing. Once a purchasing decision is made, the property transfer will become simple and transparent, allowing homebuyers to instantly understand the property's ownership status and potential risks. More importantly, the entire transaction process can be completed in just a few minutes. If a change of house is needed in the future, the property can also be quickly liquidated, truly achieving high liquidity of real estate assets.

Looking to the future, the founder holds an optimistic view of the cryptocurrency market and the realm of real-world assets ( RWA ). She expects that the annual sales of homes in the United States will grow from the current 5 million to 20 million. This growth is attributed to innovations in transaction methods—buying a home in the future will be as convenient as using ride-hailing services or short-term rental platforms today. The impact of this innovative model extends far beyond developed countries. For many developing countries that struggle to attract investment due to a lack of well-established property rights systems, this will be a life-changing opportunity. The digital transformation of real estate transactions in the United States is expected to become an important cornerstone for driving reforms in global capital markets, opening the doors to investment and financing for more countries.

This innovative company is leading a revolution in real estate through blockchain technology and cryptocurrency, aiming to create a more efficient, transparent, and inclusive global real estate market. As technology continues to evolve and adoption rates keep increasing.