New York-based real estate brokerage firm Algocap Real Estate has announced it will start accepting cryptocurrencies like bitcoin, dogecoin, and ethereum for transactions.
In a press statement, the firm said the move aims to leverage the rising crypto popularity alongside new millionaires produced by the digital currency sector. Algocap notes that these factors have contributed to the high demand for tokenizing real estate.
According to AlgoCap, there is a growing interest from consumers who want to be part of the New York property market through digital currencies.
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“Algocap has the expertise necessary to structure complex transactions, including real estate tokenization deals, and can work with both U.S. and non-U.S. clients to facilitate novel digital real estate opportunities,” said Algocap founder Max Dilendorf.”
As a pioneer of crypto transactions in real estate, Algocap acknowledges that processing such payments is complex, and the industry is short of skilled personnel to facilitate the usage of digital assets in the sector.
The real estate firm further points out there is a need to focus on regulation, especially U.S. tax laws, to facilitate cross-border transitions. However, Algocap said it has a team of lawyers who can handle complex real estate cryptocurrency transactions.
Besides allowing cryptocurrency payments, Algocap is also a pioneer in real estate tokenization that seeks to streamline transactions by eliminating tedious paperwork. Through Algocap’s tokenization, a virtual token is created to represent ownership of a real estate interest.
Growing crypto payments in real estate
The company’s decision adds to the increasing acceptance of cryptocurrencies in real estate. For example, recently, Maltese property company Dreamflats announced it would accept rental contract payments in Cardano (ADA).
The payments will be for units at the Zaha Hadid Architects’ Mercury Towers building. Elsewhere, in April, billionaire Rick Caruso’s real estate company announced it would accept bitcoin as rent payment for residential and retail properties. The company noted that accepting bitcoin was due to the belief cryptocurrencies are here to stay.
[binance]
