Vesta Equity and Algorand Partner for a Global Blockchain-based Tokenized Residential Home Equity
Vesta Equity, the global home equity marketplace, announced it would be leveraging Algorand’s blockchain as the backbone of its modern solution for residential property financing and investing.
Vesta provides homeowners with the tools to control their home equity outside of the traditional home equity financing options. Using blockchain technology, Vesta connects property investors directly to homeowners with the tools and marketplaces to seamlessly transact. This enables homeowners to remain debt-free and still retain their full residential rights. Unlike traditional home equity loans, reverse mortgages, or forward mortgages homeowners can access equity by tokenizing the underlying value and selling off a percentage to accredited investors – all without the impact of compounding interest or the significant inconvenience of an outright sale. In turn, property investors can directly (1:1) access homeowners in a peer-to-peer marketplace to build a residential equity portfolio across property types, locations, appreciation, and more.
With core functions generated and originated exclusively on the Algorand blockchain, Vesta is bringing to market a powerful mechanism to disintermediate the numerous parties in the traditional home equity/borrowing lending/space. Vesta eliminates intermediaries that have hindered the process and driven up expenses for both sides. Algorand’s open, public blockchain allows all the data that is part of the process to be readily available and verifiable — there is virtually no paperwork in the automated process.
“We have become a society of debt, but that journey needs to shift to create a more prosperous future for all. At Vesta, we believe the application of the right technologies hold the answer. Our partnership with Algorand reflects this because of their superior performance, flexible architecture, low transaction fees, and scalability of its transactional performance”, said Michael Carpentier, CEO and Co-Founder of Vesta Equity.
“Vesta Equity and Algorand have a shared vision of how blockchain enables the creation and exchange of value in a more efficient, transparent and secure manner. By expanding opportunities for homeowners as well as investors, Vesta Equity is at the forefront of creating new, more accessible market opportunities by bringing participants together through Algorand’s technology,” said W. Sean Ford, COO of Algorand. “We are excited to support Vesta Equity as they leverage the core principles of blockchain to redefine the real estate equity market.”
Vesta is aiming to be in the market by September 2021, initially in California for homes owned in full and then expanding across the US and North America. Vesta will leverage USDC stablecoin on Algorand for settlement.
Photo by christian koch on Unsplash
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