FACTOR-805 has introduced MakerDAO’s stablecoin DAI for real estate investments in New York
As reported, the Fluidity Factora project now allows users to utilise the crypto DAI in the real estate finance, specifically in the borough of Brooklyn, New York City.
DAI is the 16th crypto for volume of business, it is pegged to the U.S. dollar, and has been developed on Ethereum’s decentralised blockchain.
FACTOR-805 is primarily dedicated to a new, nearly completed, 37-unit residential condominium with commercial spaces, located on 805 Washington Avenue in Brooklyn, New York, two blocks away from the Brooklyn Botanic Garden.
The amazing initiative incorporated a stablecoin based on the blockchain to repay for the investment and interest rates of properties. This leads the project to be one of the first to unlock the barriers between the digital world and the real world.
MakerDao’s CEO and co-founder, Rune Christensen, says:
“FACTOR-805 is a breakthrough. It’s a powerful example of how to unlock more value from investments by bringing real world assets to the blockchain,” said Rune Christensen, CEO and co-founder of MakerDAO. “With Dai, investors get the speed, security and efficiency of a cryptocurrency without the volatility that typically defines the space.”
— Maker (@MakerDAO) February 20, 2019
In the plan offered by FACTOR-805, the crypto can be used to repay the initial investment and the interest rates.
The project justifies the choice of DAI as the first crypto-asset introduced, as follows:
“Dai, as a stablecoin, has the potential to remove banks as transfer intermediaries by enabling investors to be paid seamlessly through the Ethereum network. We believe this kind of automated interest payment will help streamline the back end of these transactions, which are typically slow and costly.”
The Fluidity Factora defines itself as a team of professionals operating in the structured finance and blockchain. Their mission is to update the financial infrastructure by introducing cryptos and the blockchain to allow standardisation, transparency and liquidity between capital markets.
According to Forbes, the use of stablecoins can be a real revolution in the real estate market. This because transactions are complicated, with expensive intermediaries, complex contracts, legislation and regulations.
The use of a stable coin like DAI, free from the historical price volatility of crypto-assets such as Bitcoin, could help the real estate sector, through the use of the blockchain technology, to promote peer-to-peer transactions, transparency and security.