Megatel Homes, a privately held home builder in the US, has announced the launch of a crypto payments and rewards token dubbed “MegPrime.”
The announcement came after the Dallas-based Megatel received a “no-action” letter from the Securities and Exchange Commission, allowing it to launch the universal payments token.
MegPrime token turns everyday spending into unified rewards, helping households earn a portion of the money they had spent.
Zach Ipour, co-founder of Megatel Homes, stated that the token marks the company’s first entry into the digital assets space.
Megatel Token to Earn Rewards, Not as Investment
The company made it clear that MegPrime tokens will solely be marketed as a means of making payments to earn rewards, and not as investments. Megatel will start issuing the tokens in the coming weeks, Reuters reported.
“We set out to create an open ecosystem for all renters and homeowners nationwide, one that rewards households for the full scope of their everyday spending,” said Zach Ipour.
Users who pay rent or mortgage payments with the tokens or users through the MegPrime app, may earn up to 20% back in token rewards. These rewards can be further redeemed for everyday purchases, from groceries to utility bills, the company statement read.
Additionally, MegPrime token rewards can be converted to US dollars, it added.
Besides, renters who use tokens are eligible to receive 100% of their past 12 months of rent (up to $25,000), toward a future home purchase.
“Since we have a multi-billion dollar operation building homes and we are involved in financing the homes, we believe we can perfect this model and take it to the next level, merging real estate activity with the benefit of digital currencies,” Ipour told Reuters.
Housing Market Embrace Blockchain Tech
Real estate companies are increasingly integrating blockchain technology into mainstream consumer-based programs.
The US Federal Housing Finance Agency (FHFA) has been exploring the role of crypto holdings in getting a mortgage. FHFA director Bill Pulte, a vocal crypto supporter, said last year that the agency is studying the usage of crypto in qualifying for mortgages.
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