Parcl announced the launch of the real estate investment platform, the Parcl Protocol, allowing users to trade the price movements of real estate markets around the world. Users can now invest in and trade specific geographical markets, which can be used for directional investment and hedging strategies in a traditionally opaque and walled-off asset class.
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Parcl is a digital real estate protocol built on Solana, a blockchain specifically designed to host decentralized and scalable applications. Via the innovative Parcl Protocol and leveraging data provided by Parcl Labs, Parcl facilitates real estate investment for the 21st century. Providing exposure to the most desirable cities in the United States including New York City, Miami, Phoenix, and Los Angeles, and with global cities such as Paris, London and Singapore coming later this year.
“Given the current volatility across asset classes, including real estate, Parcl can provide potential stability,” says Trevor Bacon, CEO and co-founder of Parcl. “The Parcl Protocol brings tangible asset prices on-chain through a price feed rather than by fully collateralizing the underlying assets, providing both greater liquidity and scalability. This amplifies the stability of real estate as an investment class.”
As part of the Protocol launch, today Parcl unveiled its Valentine’s Day non-transferable NFT Collectible and Trading Contest, available exclusively to select communities in the Solana ecosystem. In addition, Parcl will be granting early access to the Parcl Protocol to select projects, unveiled throughout the week of February 14th via the official Parcl Twitter.
The Parcl Protocol allows users to browse global real estate markets, gain detailed insights, and have the opportunity to either buy or short real estate markets based on whether they think the real world property values will increase or decrease. To provide users with the most accurate and reliable data to trade on, Parcl prices are powered by the Parcl Price Feed, which represents the median price per square foot/meter, aggregated at either the city or neighborhood level, and updated daily.
Built differently from other fractionalized real estate platforms, like Yieldstreet, RealT or Fundrise, Parcl takes a novel approach to increase liquidity and improve scale, using derivatives. These derivatives can improve diversification and add stability within a portfolio with a total addressable market.
“Across the globe, real estate is one of the cornerstones of wealth creation, yet there has always been structural inequity in the housing market and current market conditions are rapidly accelerating this inequity worldwide,” says Trevor. “This is why Parcl was created: It was built to revolutionize how users approach real estate as an investment towards generational wealth. By giving everyone the tools they need to access one of the world’s most desired investment classes, Parcl aims to deliver real estate to everyone.”
To create an intuitive trading experience Parcl developed key enhancements that allow users to invest in a more capital-efficient manner, including leverage, with confidence that positions will always be opened and closed against the current Parcl Price Feed price for any given market. This is in addition to new markets and new functionality such as research tools, portfolio view, and many other user-facing enhancements. The Parcl Protocol enables users to diversify their investment portfolio and potentially earn passive income. By investing in a variety of real estate indices, they can spread risk and increase their chances for success.
The Parcl Protocol requires no minimum investment, is highly liquid, and carries low transaction fees so investors can now trade their favorite neighborhoods just like they trade Bitcoin, Solana, or other crypto assets.
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