Megatel Homes is launching a cryptocurrency program through its fintech subsidiary MegPrime, centered on the MP token to attract homebuyers with favorable financing. Homebuyers who pay with MP tokens could qualify for mortgages as low as 2.9%, well below the 6% national average for 30-year loans. Brokers selling MP-denominated properties will receive a 6% commission. After receiving a no-action letter from the SEC this month, Megatel CEO Zach Ipour expressed optimism, saying, “Our plan is mega.” He added, “The plan isn’t small when you combine the power of cryptocurrencies with the housing market, and all the benefits that come with it.”
The plan sits at the intersection of a roughly $50 trillion housing market and a growing appetite among policymakers to experiment with crypto mortgage concepts, with William Pulte noting Fannie Mae and Freddie Mac would “prepare” to accept cryptocurrencies as mortgages. Etherealize, Ethereum’s lobbying arm focused on Wall Street, is exploring housing assets on-chain, and Vivek Raman said that “full mortgage securities, and the whole packaging and repackaging of structured products based on that makes all the sense in the world.” Ipour said the program had been primed for some time and that SEC clarity arrived on January 15 after Megatel’s lawyers urged the commission not to take enforcement action; MegPrime Holding LLC said the token would be marketed as a crypto asset solution for households’ monthly budget needs and affordability, not as an investment. Jonathan A. Ingram acquiesced days later, and Ipour added, “We are basically promoting our payment platform that is empowered by MP token. You can use this currency for everything that you expect, from buying coffee to pay rent.”
The MegPrime app is expected to launch on February 26 and will be pitched as a payments app. Alongside MP tokens, users can hold stablecoins and access a MegPrime payment card. Ipour also hinted at additional partnerships around the world in the coming weeks.
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