Megatel Homes, a privately held home builder based in Dallas, Texas, has announced the launch of a cryptocurrency payments and rewards token called "MegPrime." The company received a "no-action" letter from the U.S. Securities and Exchange Commission, permitting the token's introduction.
Zach Ipour, co-founder of Megatel Homes, stated that this marks the company's first venture into digital assets. He said, "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."
MegPrime tokens are designed to turn everyday spending into unified rewards, allowing households to earn back a portion of their expenditures. The company clarified that the tokens will be marketed solely as a means of making payments to earn rewards, not as investments. Token issuance is set to begin in the coming weeks, according to Reuters.
Users paying rent or mortgage payments with the tokens or through the MegPrime app may earn up to 20% back in token rewards. These rewards can be redeemed for everyday purchases such as groceries and utility bills, and can also be converted to U.S. dollars. Additionally, renters using tokens are eligible to receive 100% of their past 12 months of rent, up to $25,000, toward a future home purchase.
Ipour told Reuters, "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."
Real estate companies are increasingly integrating blockchain technology into consumer programs. The U.S. Federal Housing Finance Agency has been exploring the role of cryptocurrency holdings in mortgage qualification. FHFA director Bill Pulte, a vocal crypto supporter, said last year that the agency is studying crypto usage for mortgages.