Vesta Equity, a US-based investment firm targeting real estate opportunities, announced that they would be leveraging partnering with Algorand. The collaboration will bring in a global blockchain-based tokenized residential home equity peer-to-peer marketplace.
Vesta aims to enter the market by September 2021, initially in California for homes owned in full and then expanding across the US and North America. They will be using the USDC stablecoin on Algorand for settlement.
What Does The Partnership Look Like?
The traditional home equity/borrowing lending/space is littered with intermediaries that have hindered the process and driven up both sides' expenses. By leveraging the core functionality of the Algorand blockchain, Vesta will be bringing in a powerful system to disintermediate the numerous parties involved.
Michael Carpentier, CEO and Co-Founder of Vesta Equity, said about the partnership:
"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."
Similarly, W. Sean Ford, COO of Algorand, added:
"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. We are excited to support Vesta Equity as they leverage the core principles of blockchain to redefine the real estate equity market."
What is Vesta Equity?
Vesta Equity aims to build an inclusive and dynamic model for the multi-trillion-dollar global home equity market. This will be done by utilizing blockchain’s immutability. Vesta Equity will be coupling tokenization with smart contracts and will allow homeowners to sell a portion of their home to investors while retaining their residency. Now the investors will have the freedom to build and manage property portfolios across geographies and with complete transparency.
What is Algorand?
Founded by Turing Award-winning cryptographer Silvio Micali, Algorand developed a blockchain infrastructure that offers the interoperability and capacity to handle the volume of transactions needed for modern blockchain applications. Other distinguishing factors that Algorand delivers include fast transaction processing, low-cost and decentralized consensus, and no forks.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.