Large pieces of virtual property in fictional lands like Decentraland and Sandbox are being exchanged for millions of dollars, making it more difficult to buy real estate both in the real and virtual worlds during the last year. Virtual real estate finance was just a matter of time until someone began providing it. And it’s finally been done: Metaverse developer TerraZero claims to have granted one of the first metaverse mortgages for a $ 45,000 surrogate parcel of property in a Decentraland entertainment zone. TerraZero An omen of things to come, I’d say.
It has been announced that TerraZero Technologies, a metaverse tech business, has executed a “metaverse mortgage” with one of its clients.
In order to acquire virtual real estate, TerraZero, a Vancouver-based company, provided the bulk of the cash and wants to provide the service to its customers who wish to finance the acquisition and buy virtual real estate, represented as a non-fungible token (NFT).
A ‘Metaverse Mortgage’ loan will be collateral for all transactions using NFTs as digital assets. On the TerraZero platform, customers will be able to browse products and listings and suggest additional targeted NFT assets to the firm for a mortgage-based transaction.
TerraZero allows the customer to take out a mortgage on the property after they have signed the contract, as long as TerraZero is listed as the registered owner of the land NFT.
“TerraZero’s CEO and Founder Dan Reitzik said that the company’s mission is to “develop and deliver the technologies that connect the actual world with the Metaverse. A new economy is growing and we want to help entrepreneurs and anyone who have comparable goods and services for the Metaverse that are accessible in the real world. The Metaverse’s growth and acceptance will be accelerated by the availability of mortgages and finance, and we are thrilled to be at the vanguard of this fascinating new economy.”
Tech companies have been seeking to monetise the metaverse, according to a report from PYMNTS, with initiatives intended to create additional possibilities around what they consider a developing sector. According to Roblox, the company is working at creating additional options for virtual businesses to thrive.
