Propy, the PropTech startup hoping to create a decentralised title registry powered by blockchain, has just completed one of the property industry’s very first Initial Coin Offerings (ICO). From 6,500 participants, the ICO raised US$15 million, US$2 million of which came before the coin release in the form of pre-sale commitments.
Propy, based in California, is working to use blockchain technology to aide and improve the processes of buying property across state and national borders.
Through the blockchain, built on Ethereum, Propy will power a peer-to-peer, decentralised, property exchange platform. Thanks to the blockchain, and smart contracts, the company can track global property ownership, and process transactions, according to regional regulations.
One of the key investors in Propy is CrunchFund, the early stage investment firm set up by Michael Arrington, founder of TechCrunch, who has pledged to make the very first property transaction through the platform.
Propy and Collaboration
Alongside their ICO, Propy has also been entering some very interesting partnerships over recent months, something which I personally am delighted to see more and hope to see more of.
Firstly, Propy has partnered with Leju Holdings Limited, a Chinese online-to-offline property service provider. The partnership will focus on facilitating online property purchases, in China, by foreign investors.
Another Propy partnership has been set in motion with the Ukrainian government, one which uses Propy’s decentralised marketplace and title registry to allow foreign investors to purchase property more easily and securely; the hope is that, eventually, Ukrainian property will be able to be sold entirely online. It’s a move which coincides with new Ukrainian regulations, arriving in 2018, aimed at allowing foreign investors the right to purchase land in the Ukraine, in the hope of opening the country’s agricultural resources to international buyers.
In order to improve transparency in both the government and the property industry, the Ukrainian government, earlier this month, completed the country’s very first venture into blockchain with a trial auction of seized property.
The initiative comes as part of a wider drive by the Ukrainian government to modernise state institutions and eliminate corruption, in exchange for a US$40 billion bailout from the International Monetary fund and other donors.