Traditionally, when people think of real estate investments these involve large funds, intermediaries like brokers and lawyers, and transactions that can take weeks. Real estate investments also often come with complex lending processes, and its yields are often inaccessible thanks to high initial investments.
However, when real estate is brought onchain, investors can buy, sell, and transfer ownership of properties across the world instantaneously. We also see onchain land ownership enabling smoother land transactions, ensuring asset holders retain full, direct, control over their properties. Streamlined ownership will help unlock even more potential from each property.
With these clear advantages and a commitment to Object-Oriented Finance, Metastreet has started a new partnership with Fabrica and its digitized real property titles.
Why Fabrica
Fabrica enables investors to lend with confidence, backed by tangible real estate assets and solid collateral that both secures investments and provides appealing returns.
It is a platform that digitizes real estate ownership by representing properties, currently U.S. land plots, as on-chain tokens. Acquiring a Fabrica token grants full legal ownership rights to the underlying property, combining the transparency, speed, and efficiency of blockchain technology with the security and legal recognition of traditional real estate.
Each property token is backed by a trust, a legal structure that records property ownership at the local county level. This trust serves as a bridge, linking the on-chain token to the physical property and ensuring compliance with local regulations, making real estate-backed lending a more secure and efficient process.
Learn more about their lending process here: https://blog.fabrica.land/lending-guide
How Metastreet Has Partnered with Fabrica
In partnership with Fabrica, Metastreet is able to offer pool-to-peer lending to both Fabrica and MetaStreet users, where lenders can contribute liquidity into a shared pool. This pool then automatically allocates capital to borrowers based on the estimated value of the property, with loan terms tailored to each borrower.
Lenders can define their risk tolerance by setting preferences for maximum Loan-to-Value (LTV) ratios and loan durations.
Metastreet is able to manage these investments automatically, efficiently combining resources from multiple lenders regardless of individual contribution sizes. This collaboration allows Fabrica to leverage Metastreet’s innovative on-chain capital markets infrastructure, delivering efficient lending solutions across diverse asset classes.