Propy, a real estate tokenization firm, is introducing crypto-backed mortgage services to the real-world assets, aiming to change how people purchase real estate.

According to a news release, Propy has announced the first-ever crypto loan that will enable prospective real estate buyers to access onchain loans to purchase property in Hawaii.

Bitcoin (BTC) and Ethereum (ETH) holders will be able to use their digital assets as collateral to buy real estate. This crypto-backed mortgage service marks the first step in Propy’s mission to make the $300 trillion real estate market more liquid and swappable.

“This isn’t just a milestone; it’s a glimpse into the future of real estate,” said Natalia Karayaneva, CEO of Propy. “We’re demonstrating how blockchain technology can simplify home buying, replacing the traditionally lengthy loan approval process with an instant, efficient solution.”

Propy says this new financing option will allow customers to leverage their cryptocurrency to purchase real estate while retaining ownership of their digital assets.

The loans will be double-collateralized, with the property accounting for 50% of the collateral and BTC or ETH covering the remaining 50%. The interest rate is set at 10%.

Propy’s first offering under this service is a condominium in Honolulu, Hawaii. The property will go on sale on Jan. 29, 2025, with an asking price of $250,000. BTC and ETH holders can use their assets as collateral to access a loan to finance the purchase, the company announced.