On January 29, TerraZero Technologies issued one of the first mortgages in the Metaverse – a network of virtual worlds where users can interact with others, experience entertainment, attend events, and much more.
The CEO of TerraZero said that the firm had issued a two-year mortgage for a $45,000 parcel of land in ‘Decentraland’, a Metaverse with approximately 92,000 parcels, for an undisclosed down payment and interest rate.
The Company used a traditional real estate mortgage vetting process, self-financed the purchase, and now owns the non-fungible token (NFT) that was used to securitize the mortgaged land.
TerraZero provided the majority of the funding (lending) for the client’s virtual real estate purchase. It is now offering this newly designed Metaverse mortgage service to its clients who want to use the Company’s ‘Metaverse Mortgage’ loans to finance the acquisition and purchase of virtual real estate (represented as a non-fungible token) by using the underlying NFTs as digital assets as collateral.
TerraZero’s CEO stated that the “Our Company’s vision is to create and distribute tools that connect the real world with the Metaverse. A whole new economy is forming, and they want to provide entrepreneurs and general public with Metaverse-specific products and services that are available in the real world. Mortgages and other forms of financing will hasten the Metaverse’s development and adoption, and TerraZero is thrilled to be among the first players of this new and exciting economy”.
With each passing day, we continue to move towards a world where virtual reality seems to be getting more and more realistic with the help of new technology.
One such advancement is the conception and formation of the Metaverse. It is essential to know what Metaverse is and how it works.