If you haven’t been living under a rock, you must have heard about blockchain technology. That said, it’s understandable if you brushed it off because it had nothing to do with you.

That might not be the case anymore. 

If you are struggling to buy a home amid the ongoing housing crisis, FinTech company DigitalX (ASX: DCC) and Property Tech company Bricklet have a blockchain-powered solution. The two companies have come together via a five-year agreement to offer affordable housing solutions for Aussies. 

DigitalX CEO Lisa Wade said, “DigitalX is excited to work with Bricklet to further the cause of housing affordability for all Australians. We believe our Real World Asset Tokenisation Fund (RWAT) can solve real world problems whilst at the same time achieve quality and sustainable investor returns. We see partnering with Digital asset firms such as Bricklet the perfect way to bring our real world asset token fund to life.”

Bricklet’s equity share program—Homeowner Equity Share (“ES”)—is a co-ownership solution allowing people to purchase their home with a deposit of as little as $20,000. Bricklet breaks property into smaller pieces to enable everyone to buy into Australia’s housing market as an investor or owner.

Basically, when you decide to buy a house, you can register on Bricklet’s blockchain platform to connect with potential investors. While you cover a part of the mortgage, DigitalX’s investment fund (enabled by AMP bank) will cover the rest, thus filling your “deposit gap”. 

These funds will be from interested wholesale investors who will become part owners of the property. In return, you pay them a part of the rent, and they get their share of the money when you decide to sell your property. If you want, you can buy the investor portion of the property, too, to get the whole sum upon selling. 

As per the agreement, DigitalX will initially secure funding of $5 million for the proposed property investments it wants to participate. For the seed capital, the Company will contribute up to $500k of balance sheet funds into Bricklet’s property deals until its newly formed investment fund—RWAT—is established.

Bricklet CEO, Darren Younger, shared, “Bricklet’s pursuit to make it possible for mums and dads to get on the property ladder has now been brought together with DigitalX’s funding structures. Together, we have used cutting-edge technology to solve the real world problem.”

The companies have also considered the more detailed logistical barriers to homeownership. Bricklet has launched the Australian Property Co-Ownership Register (APCOR). It uses blockchain technology to speed up and reduce the cost of registering a change in property co-ownership. It provides a direct link between the land title and the co-owners, with the first transactions appearing on New South Wales Land Registry in 2022. It registers a secure, immutable record of ownership of the property.

Together, the companies aim to lower the barriers to homeownership for everyday Australians. 

As part of this partnership, DigitalX will receive a commission fee payable on each completed funding threshold. It will get $1 million after $50 million is deployed, $2 million after a total of $150 million is deployed, and $2 million after a total of $250 million is deployed. It will also get a settlement fee of up to 20% of Bricklet’s platform fee of $10k arising from the successful settlement of a property in which it contributes equity.

Blockchain ensures secure and seamless transactions. However, the lack of regulation and transparency regarding investors might deter potential homebuyers.