A leading tech platform has promised to speed up the property sales process by making mortgage fund transfers quicker on completion day.
London-based Coadjute says this will be achieved by issuing a ‘stablecoin’ on its property sales blockchain network.
A ‘stablecoin’ is a steady form of cryptocurrency that does not fluctuate in value like say Bitcoin or Ethereum which can – as Bitcoin did recently – suddenly crash or jump in value.
Coadjute says its stablecoin will vastly improve the movement of mortgage funds within the housing market and is the first in the world expressly designed to speed up the completion of sales and mortgages.
Little innovation
The proptech firm says the existing process for completion of a property transaction has seen little innovation in the last 20 years; multiple parties move large amounts of money between a complex array of accounts, often using email and phone calls to communicate and check details.
This can create swathes of red tape which frequently cause last-minute delays in completion, and the familiar “Friday afternoon rush”, while the traditional process is also vulnerable to fraud.
Coadjute’s approach provides a ‘single source of truth’ simultaneously to all parties involved, removes the need for continuous manual reconciliation, and significantly cuts the risk of fraud.
John Reynolds (pictured) COO of Coadjute says: “The opportunity to reduce push payment fraud is particularly significant. We enable conveyancers to continue to manage transactions but without having to take on the risk of holding cash in client accounts. This in turn could unlock lower Professional Indemnity Insurance premiums, potentially by more than 15%, a significant saving for a sector struggling with recent PI insurance increases”.
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