What is a Real-World Asset (RWA)?
Its Context in Real Estate Explained
A Real-World Asset (RWA) token is like a digital certificate of ownership, stored securely on the blockchain. We also like to refer to it as Asset OnChain.
Each token is unique and can represent anything — art, collectibles, or physical real estate. For property, this means ownership can be easily verified, transferred, or sold with full transparency and ease.
It also unlocks new possibilities, such as faster transactions, and even borrowing against the value of your property — all with the security and efficiency of blockchain technology.
Buying Real Property RWAs on Propy’s Onchain Marketplace
Real estate onchain assets can be bought and sold just like any other digital asset. These properties are purchased using cryptocurrency (usually chosen by the seller) and are held in a digital wallet. To ensure full compliance, it is important to note that a real property RWA purchase requires the completion of a "Know Your Customer" (KYC) form. Additionally, prospective buyers must be whitelisted before they are eligible to submit an offer. Propy makes purchasing an RWA property seamless and efficient because RWA Marketplace was specifically developed to support these types of transactions.
Our upcoming real property sales in Hawaii will use USD Coin (USDC). USDC is a “stablecoin” that is “pegged” to the U.S. Dollar, so it doesn’t have the volatility of other cryptocurrencies. 1 USDC will always equal $1.
Why buy a Real World Asset?
- Transparency and Security: Blockchain technology provides immutable records of ownership and transactions, reducing fraud.
- Speed & Efficiency, Lower Costs: Leverage smart contracts to automate the buying process, making it fast, secure, and seamless for buyers. By eliminating intermediaries, transaction costs can be reduced by up to 10%.
- Unlock Instant Onchain Liquidity: Tokenized assets can be borrowed against. Use your RWA NFT as collateral for fast, secure DeFi loans.
- Not Fractional Ownership: You own 100% of the asset.
How To Prepare For an RWA Sale on the Propy Marketplace
- Tokenizing “ownership rights” makes it much easier to trade, manage and transfer property ownership.
- NFTs and blockchain technology make it very easy to ensure the chain of ownership.
- Smart contracts automate the entire transaction and sales process, required paperwork, and deed transfers.
- The NFT is proof of ownership that can be transferred to all future buyers.
- Legally, whoever has possession of the NFT, owns the property.
- NFTs can be easily borrowed-against.
1. Connect or Create a Metamask Wallet/Coinbase Wallet
Watch a short, "how-to video" here. You will need a Metamask/Coinbase wallet to participate in the onchain property sale process.
2. Fund Your Wallet
Add the required amount of cryptocurrency that you plan to offer for the property. Ensure your wallet is adequately funded for your intended offer.
3. Complete the Required KYC Form
Submit the mandatory Know Your Customer (KYC) form to verify your identity. You will need to upload a valid government-issued ID or passport as part of this process.Watch a short, step-by-step "how-to video" here.
4. Review and Acknowledge Acceptance of Property & Sale Documents
Once your KYC is approved, you’ll unlock full access to all property documents and disclosures. The property documents will include inspection reports, comparables, legal and financial disclosures, as well as RWA sale documents.
5. Submit an Offer
The sale window is open for 24-48 hours. During this time, pre-approved buyers can submit and modify their offers in USDC in real time. If a higher bid is placed, you’ll have the opportunity to adjust your offer accordingly.