Author: Weilin, PANews
The RWA track has made important new progress recently. In mid-last month, BlackRock's BUIDL, Superstate and Ondo Finance planned to apply for MakerDAO's $1 billion Treasury bond tokenization plan. The goal of this plan is to tokenize $1 billion of real-world assets (RWA) and introduce them to MakerDAO. Due to its investment scale, it is expected to have a huge boost to the development of the RWA protocol.
The data also shows the popularity of RWA. According to the 2024Q2 Crypto Industry Report released by CoinGecko, the RWA track accounted for 11.3% of network traffic in the second quarter, second only to the Meme token, which ranked first and contributed 14.34% of traffic. These data show that the RWA track is receiving more and more attention and is expected to become the next leader in crypto wealth growth. According to data from RWA.xyz, as of August 26, the on-chain assets of the RAW track (excluding stablecoins) reached US$11.66 billion, mainly concentrated in private credit, US Treasury bonds, commodities, etc.
In fact, in addition to the common treasury bond RWA projects, the intersection of real estate and blockchain is spawning many opportunities. There are also some long-established projects that continue to innovate but have not received widespread public attention. This article will introduce a project whose token has long been listed on Coinbase but remains low-key - Propy. Founded in 2017 and headquartered in Silicon Valley, Propy has become a star project by reducing costs, simplifying processes, and improving transaction security. In recent months, Propy has announced cooperation with the decentralized real estate derivatives protocol Parcl and the oracle network Chainlink. These cooperation dynamics have enhanced Propy's technical capabilities and injected more positive factors, making it one of the most innovative projects in the RWA track.
Putting real assets on the blockchain increases the liquidity and accessibility of real estate
Traditional real estate transactions face many pain points, such as high title fees, opaque processes, low efficiency and fraud risks. Propy solves these problems by putting real estate assets on the chain and combining blockchain technology to provide safe and convenient services for real estate transactions. As of August 26, Propy's transaction volume has exceeded US$5 billion.
Propy was founded by Natalia Karayaneva, a serial entrepreneur with extensive experience in real estate development, and Denitza Tyufekchieva, a co-founder with professional experience in blockchain, real estate, and business development. Propy raised $7.7 million in August 2017 and received investment from Arrington Capital and well-known venture capitalist Tim Draper in October 2020.
Propy has three core products, namely Propy Real Estate Transaction Platform, Propy Title and Escrow Service, and PropyKeys. Propy Real Estate Transaction Platform uses smart contracts, RWA and blockchain technology to provide end-to-end real estate transaction services for agents and customers. The innovation of this platform not only improves the transparency of transactions, but also simplifies the transaction process and reduces costs.
The second core product is a blockchain-based title and escrow service that ensures transaction security while supporting traditional title transfer processes.
Propy's third core product, PropyKeys, is based on the Ethereum Layer 2 network Base, which realizes the tokenization of real estate. In March of this year, PropyKeys was officially opened to the public. Users can earn PRO tokens by minting and storing on-chain addresses corresponding to physical properties and property certificates through the PropyKeys app. PropyKeys is also a "gamified" platform that has launched a staking mechanism to reward users for staking real estate NFTs and allows users to mint AI-generated global landmark NFTs for personalized customization. The introduction of this tokenization and staking mechanism provides users with more investment and income opportunities, further promoting the activity of the market. As of August 26, 268,618 addresses of PropyKeys have been minted.
Through three core products, Propy combines blockchain technology to significantly improve the security and efficiency of real estate transactions. Blockchain’s distributed ledger technology ensures that all participants can view transaction history, preventing tampering or fraud. Each transaction step is recorded on the blockchain, and any relevant party can track it in real time, which also reduces problems caused by human negligence or errors.
Propy improves the efficiency of real estate transactions. Smart contracts automatically execute transaction terms, reducing dependence on intermediaries and manual intervention, thereby simplifying the transaction process.
Through blockchain technology, Propy also improves the security of real estate transactions. According to FundingShield's Q1 2024 Fraud Analysis Report, 48% of loans processed in the first quarter of 2024 had at least one risk factor for wire and title fraud. Although this percentage is down from the record high in the fourth quarter of 2023, it is still considered high.
Title fraud occurs when fraudsters steal a homeowner's identity and forge documents to transfer ownership of a property without the homeowner's knowledge. They then submit these false documents and quickly sell the property, leaving the true homeowner and unsuspecting buyer to deal with the consequences. This fraud not only causes losses to the homeowner, but also creates serious legal and financial risks for the buyer.
Traditional methods of preventing title fraud rely on paper documents and manual verification, which are slow and error-prone, making modern digital solutions necessary. Propy’s Propy KYC (Know Your Customer) and POF (Proof of Funds) tools are designed to further reduce the risk of real estate transfers. These tools enable agents to verify the identity of potential buyers and confirm the legitimacy of their funds, whether in cash or cryptocurrency. By reducing the risk of fraud and identifying legitimate buyers, all parties can ensure the security and credibility of the transaction.
Join hands with leading projects to launch multiple collaborations to boost the development of the RWA track
Propy has experienced significant growth recently and has successfully reached cooperation with multiple key partners to promote the development of the project.
As Propy's core product, PropyKeys launched its Dapp on Base in March, which has become a new growth point for Propy. In April, PropyKeys integrated Chainlink Automation on Base to distribute staking rewards. Automation of the oracle network Chainlink allows developers to automate key on-chain functions at regular intervals or in response to external events, thereby improving the user experience, efficiency and reducing the possibility of human errors in decentralized protocols. The cooperation between the two parties not only improves the functionality of PropyKeys, but also enhances the stability and reliability of its overall platform.
In early July, renowned private equity fund manager Grant Cardone listed his $42 million Florida mansion for sale on the Propy platform, marking Propy's further expansion into the high-end real estate market, increasing Propy's market visibility and attracting more attention from high-net-worth clients.
On July 19, Propy and decentralized real estate derivatives protocol Parcl announced a strategic partnership to improve the quality of on-chain real estate analysis and valuation. Propy will use Parcl’s API to improve valuation and analysis capabilities related to PropyKeys.
With so many favorable factors, Propy is full of potential opportunities. Its native token is PRO, which is used to access platform services and reward users in the gamified Propy experience.
Since the launch of PropyKeys and its dApp, Propy's layout and adoption in major real estate markets in the United States have continued to expand, and it plans to expand globally in 2024. Propy's global expansion plan will further promote the development of the RWA track and bring innovative solutions to more users and markets.
At the same time, the entire RWA track is also booming, which brings Propy a broader market prospect. According to the BCG report, by 2030, the global RWA market is expected to reach 16 trillion US dollars. At present, traditional financial giants such as Citi, BlackRock, Fidelity and JPMorgan Chase have entered the market. The participation of these financial giants not only proves the huge potential of the RWA market, but also provides strong support for the future development of Propy and other innovative projects.
