Propy, a blockchain-based real estate platform, has introduced a new crypto escrow service designed to simplify high-value transactions such as real estate closings and mergers and acquisitions (M&A).
Built in partnership with Coinbase Prime, Propy’s service enables buyers to securely hold cryptocurrencies —such as Bitcoin, Ethereum and USDC — in escrow during the transaction process, mitigating risks associated with early conversion and market volatility.
The service targets a growing market of crypto holders in the US who are increasingly looking to use digital assets for real-world purchases. With more than 50 million Americans reported to hold crypto as of 2023, demand for secure transaction options that integrate cryptocurrency is on the rise.
For real estate transactions, Propy’s service offers an option for crypto investors looking to avoid premature conversions that could trigger capital gains taxes or potential losses if a deal falls through.
“The strength of Propy Crypto Escrow lies in its ability to safeguard funds during the closing process, offering unprecedented security to both buyers and sellers,” said Natalia Karayaneva, CEO of Propy.
“As the first US-licensed title company to operate in the crypto space, we are committed to providing a seamless and protected closing experience. With Coinbase’s trusted custody solution, we add an extra layer of security, ensuring funds are held securely until the final stages of the transaction.”
How the service works
The new service provides a 30-day window typical of real estate closings, where the buyer’s crypto remains in Coinbase’s secure custody until the final transaction stage. This setup enables sellers to receive payment in dollars, while buyers avoid early conversions that could incur taxes or repurchase costs if the deal falls through.
Traditional title and escrow companies generally lack the infrastructure to accept or manage cryptocurrency in escrow, making Propy’s integration with Coinbase Prime a step toward filling this gap in the market.
Former US Securities and Exchange Commission commissioner and Propy board member Mike Piwowar said: “This collaboration between Web3 leaders Propy and Coinbase represents a major step forward in innovations that yield tangible benefits for everyone involved in real estate.”
Propy’s service comes as the $43trillion US real estate market sees increasing interest from crypto holders. In 2021, Redfin reported that over 12 per cent of first-time home buyers had leveraged crypto to help finance their purchase. Propy’s crypto escrow service now provides an official and regulated pathway for these transactions, opening up new possibilities for high-value acquisitions in both real estate and other sectors.
Propy also recently unveiled a new partnership with Inspectify, a property inspection platform, designed to streamline the home-buying experience. This partnership brings a key upgrade to the Propy platform, making it easier for buyers and agents to order inspection reports, as well as extract data from them to feed the settlement protocol —all in one place.
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