Propy, a leader in real estate tokenization, has unveiled plans for a $100 million expansion to acquire mid-sized property title firms across the United States. This initiative aims to modernize an industry that predominantly relies on manual workflows, utilizing blockchain technology and artificial intelligence (AI) for enhancements.
“Over the next year, we plan to acquire regional title companies nationwide,” stated Propy CEO Natalia Karayaneva in an interview with Coindesk. “This strategy will enable us to reach a billion-dollar valuation as a technology entity.”
To finance these acquisitions, Propy is leveraging a blend of traditional and on-chain lenders, including contributions from the decentralized finance (DeFi) platform Morpho. The company asserts that this approach marks one of the earliest known cases of using on-chain private credit for mergers and acquisitions (M&A).
This expansion occurs amid rising interest in real estate tokenization, which seeks to digitize property rights and enhance transactions via blockchain for better efficiency. Title firms play a crucial role in verifying property ownership histories and ensuring that no legal disputes, claims, or liens could jeopardize a sale. They also provide title insurance and facilitate the legal ownership transfer during real estate transactions.
This sector is valued at $25 billion but remains largely paper-based and fragmented among nearly 7,000 firms, many of which are small family-owned businesses, as explained by Propy’s CEO during the Coindesk interview.
Propy functions as a licensed title company and has facilitated $4 billion in digital real estate transactions by automating labor-intensive tasks with AI. By acquiring mid-sized title companies in key states like California, Florida, and Texas, Propy intends to enhance operational efficiency, reduce fraud, and accelerate closing times through the application of blockchain technology and AI, she noted.
A key element of Propy’s strategy is Agent Avery, an AI-driven escrow agent designed to tackle inefficiencies that heavily burden escrow officers. The company claims that Agent Avery was developed using Propy’s transaction data and is available 24/7, supporting both traditional and cryptocurrency payments. This tool is estimated to save around 40% of workload, enabling agents to complete more deals.
In addition to its expansion and advancements in AI, Propy has welcomed former U.S. Treasury official Chris Campbell and Science Inc. co-founder Mike Jones to its advisory board, complementing previous appointments that include ex-SEC Commissioner Michael Piwowar.
