The Metaverse coin frenzy is rapidly gaining momentum, and a surprising new development has emerged—Metaverse mortgages are now being issued for the acquisition of virtual land. In a groundbreaking move, one of the initial mortgage applications has been confirmed for a property in Decentraland, a platform based on Ethereum. For detailed information, you can refer to metaverseplanet.net.
TerraZero Technologies played a pivotal role in facilitating one of the first-ever “metaverse mortgages” for a client venturing into virtual property ownership within the Decentraland metaverse.
While TerraZero Technologies revealed that it provided the majority of the funding, specific financial terms and the identity of the customer remain undisclosed at this time. Queries directed at TerraZero are yet to receive responses.
Dan Reitzik, the CEO of TerraZero, expressed the significance of this milestone, stating, “The availability of mortgages and financing will accelerate the development and adoption of the metaverse. We are excited to be at the forefront of this new and exciting economy.”
Moving forward, prospective clients have the option to explore metaverse land listings on the TerraZero website and subsequently finalize the brokerage process with the company.
TerraZero assumes ownership of the virtual land as the registered owner until the loan is fully repaid. Notably, each transaction is collateralized by the underlying virtual real estate, represented as a Non-Fungible Token (NFT).
The concept of Metaverse mortgages gained traction as virtual property sales experienced a surge in the previous year. According to MetaMetric Solutions, virtual real estate sales surpassed $500 million in 2021. One notable deal included a $2.43 million purchase of virtual land.
Major clothing and luxury brands are also actively exploring metaverse features. However, some experts argue that virtual real estate functions more like crypto assets than physical land.
While digital land can provide brands with opportunities to create immersive experiences, investors seeking traditional property appreciation may find it to be a different kind of asset.
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