The $217 trillion international real estate market is inaccessible to most investors. Complex cross-border legalities, escrow issues, bureaucracy, multiple intermediaries, and a lack of transparency make it virtually impossible to buy property abroad.
Enter Propy [www.propy.com]—a global property store and decentralized title registry that today announced the world’s first real estate asset transfer on the Ethereum blockchain. On Sept. 24, TechCrunch founder Michael Arrington purchased an apartment in Kiev, Ukraine using the Ethereum cryptocurrency and PRO (Propy) tokens—bringing transparency, efficiency, and security to an industry fraught with red tape.
This groundbreaking purchase marks three “firsts”:
1. IT’S THE FIRST REAL ASSET TRANSFER VIA THE BLOCKCHAIN
Propy utilized the Ethereum blockchain—a technology that is quickly gaining on bitcoin as the blockchain of choice for developers. In doing so, it has broken first ground in putting the real estate market on the blockchain.
2. IT’S THE FIRST GOVERNMENT-APPROVED CRYPTOCURRENCY PURCHASE
The government of Ukraine agreed to pilot Propy’s decentralized title registry—marking the first time a government has ever sanctioned the use of cryptocurrency for a purchase.
3. IT’S THE FIRST SIGNAL THAT THE BLOCKCHAIN IS THE FUTURE OF GLOBAL REAL ESTATE
This purchase is an important signal to foreign investors—especially Chinese, who face strict capital controls of $50,000 per person—that they can safely and easily invest in Ukraine and, soon, other countries.