TerraZero brings mortgages to the metaverse

On Saturday, Vancouver-based TerraZero completed a “metaverse mortgage” transaction with a client buying virtual real estate. The “land” purchased was in Ethereum-based metaverse Decentraland.

Why should we care?
The metaverse in its current state is relatively small and niche—primarily an inviting realm to users who were early adopters of other techno-cultures. But, if the metaverse becomes a demonstrably profitable space, then more mainstream flocks may follow suit, much in the same way that celebrities have normalized NFTs and other crypto-initiatives. The introduction of pseudo-proptech to the metaverse may be one such crucial gateway—making loans a money-making cornerstone of this small online economy. This development is about much more than TerraZero. If the company’s transaction from Saturday makes enough of a splash with the right movers and shakers, then we may see a proliferation of institutions looking to offer the same service. Peer-to-peer loans within the space could take off as well. Either way, the further financialization of the metaverse may represent a sea change to insiders; to those unconvinced by the virtual realm, TerraZero may appear to be little more than another scam.