The Future. It was inevitable: mortgages in the metaverse have arrived. TerraZero Technologies has backed the first one in Decentraland, which will probably set off a firestorm of users hoping to get approved. They might even use virtual ownership as collateral to finance a home in the real world if the digital land skyrockets in value.
Just because you may not be able to afford a mortgage in real life doesn’t mean you can’t have one in the metaverse.
- Web3 company TerraZero Technologies facilitated the first virtual mortgage for a home in the Decentraland metaverse, putting up the loan to buy the property.
- How much the home went for or who the owner is were not disclosed.
TerraZero, which plans on facilitating more mortgages, will be listed as the registered owner on all transactions until the loan is fully paid off. Unsurprisingly, each transaction is represented as an NFT.
CEO Dan Reitzik noted that “Mortgages and financing availability will expedite the development and adoption of the metaverse.” And he’s not kidding — virtual homes can be expensive, with the biggest deal so far valued at $2.43 million.
According to data firm MetaMetric Solutions, $500 million in virtual land sales were executed last year.