Investors Can Now Buy Home Equity Slices Via Fractionalized NFTs

The new marketplace joins a growing list of startups trying to incorporate real-life use cases for NFTs

article-image

Source: Shutterstock

share
  • “Imagine a world where, with a few clicks of your mouse, you can access the entire accumulated value of the equity in your home without incurring debt or selling and moving,” Vesta’s CEO said
  • The fractionalized NFTs are packaged as a security and registered with the SEC

A real estate startup has rolled out a service that allows homeowners to part with a fraction of their equity via fractionalized NFT sales.

Vesta Equity tapped the Algorand blockchain for its NFT (non-fungible token) marketplace, which it contends is the first peer-to-peer exchange that allows homeowners to leverage and sell a slice of equity with digital collectibles.

“Imagine a world where, with a few clicks of your mouse, you can access the entire accumulated value of the equity in your home without incurring debt or selling and moving,” CEO Michael Carpentier said in a statement.

The fractionalized NFTs — which do not confer residential rights — are packaged as a security and are exempt from registration with the Securities and Exchange Commission. Holders, Carpentier said, can build a portfolio of real estate assets to complement traditional equity investments.

Qualifying as a security and meeting the SEC’s regulatory requirements have often been points of ambiguity for crypto companies.

Last year, a class action complaint was filed against Dapper Labs, the creator of popular NFT collections such as NBA Top Shot Moments, alleging that some of the digital collectibles were acting as unregistered securities.

Vesta sees little gray area in the SEC’s interpretation — Carpentier says he doesn’t “feel the regulatory environment is unclear.”

“The SEC’s position on fractionalized real estate assets is very clearly articulated,” he said. “They consider them securities, and their sale needs to be made under an SEC offering type.”

The marketplace joins a growing number of NFT projects vying for real-life use cases.

Blockchain startup Propy last month auctioned a Florida home as an NFT for over $653,000. Propy CEO Natalia Karayaneva told Blockworks the company’s services could “turn into a standard in the [real estate] industry.”

“NFT sales reached $4 billion in December 2021, and real-world assets will soon represent a significant portion of that market,” Karayaneva said.


Correction: Fractionalized NFTs are exempt from registration with the SEC. This story was updated on April 4th, 2022.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Monad SR Report Graphic.png

Research

Monad is a new Layer 1 blockchain designed as a high performance, EVM-compatible platform.

article-image

Engineers from MetaMask, Coinbase, Google, and the Ethereum Foundation make the case for onchain AI agents via ERC-8004

article-image

Legacy payments firm partners with Anchorage Digital to issue a dollar-pegged token under new US stablecoin law

by Blockworks /
article-image

As Solana ETFs launch but network REV trends lower, Jito sits at the intersection of new capital inflows and microstructure improvements

article-image

The Truth Social parent will integrate Crypto.com Derivatives North America, allowing users to trade prediction contracts under federal oversight

by Blockworks /
article-image

Partnership surpasses $2 billion in staked assets and adds support for new Proof-of-Stake networks

by Blockworks /
article-image

The tokenization leader will merge with Cantor Equity Partners II, becoming the first public firm focused on securities tokenization

by Blockworks /