XRP investors are exploring a new approach to purchasing real estate that does not involve traditional banks or real estate loans. This method, gaining attention after the post by cryptocurrency commentator MrAQUAMAN33, involves borrowing against XRP to fund home purchases.
According to MrAQUAMAN33, XRP holders can access capital through a decentralized financial platform called Metal X Lending. A solution to this issue is that users can keep their XRP in staking and access cash without having to sell it.
With no fixed repayment term and only a minimum interest rate, this method provides financial flexibility while still maintaining complete ownership of cryptocurrency.
The proposed scenario involves an individual holding 10 million dollars in XRP. Instead of selling any part of their ownership, the owner will receive a 2 million dollar loan from the platform to pay cash for their home. This process does not involve banks or lenders as it is funded by a self-issued loan backed by cryptocurrency.
Tokenization Adds a New Layer to Cryptocurrency-Backed Asset Ownership
After purchasing the property, the next step in the strategy is to integrate the home into the blockchain ecosystem through tokens. MrAQUAMAN33 has referenced platforms like Lofty and PRYPCO, both of which facilitate the process of converting physical real estate into digital tokens.
Lofty, operating out of New York, uses Algorand to tokenize real estate, while PRYPCO, from Dubai, is setting up its system using the XRP network. The video explains that PRYPCO complies with regulations and is ready to engage with those regulations.
Depending on how the platform is set up, tokenized real estate can generate profits or be divided into shares for investors.
The trend behind this model is that cryptocurrency owners are less likely to sell right now. Instead, they are using decentralized finance to ensure they have cash in hand while still continuing to invest for the future. This method allows users to conduct transactions without the help of financial institutions.
By borrowing against XRP and tokenizing the purchased real estate, cryptocurrency holders are leveraging a strategy that connects digital assets with traditional market value, without relying on banks or conventional lending services.
