I recently wrote an article discussing how the use of cryptocurrencies in real estate transactions may one day soon be commonplace. Cryptocurrencies have the potential to revolutionize real estate transactions, but cryptocurrencies are not alone in that regard. NFT’s also offer the potential to change the way real estate transactions are conducted and completed.

NFT’s are non-fungible tokens. As defined by Wikipedia, a “non-fungible token” is a non-interchangeable unit of data stored on a blockchain, a form of digital ledger. Simply stated, NFT’s transform digital works of art and other collectibles into a verifiable one-of-a-kind asset that is easy to locate and trade on the blockchain.

As this article explains, there is one company that has already issued a few residential mortgages as NFT’s, and LoanSnap plans to issue more NFT’s tied to mortgages in the months and years ahead.

The advantage of these potential NFT mortgages is that they continue to empower the retail investor. Last year saw wild stock market swings in companies like AMC and Gamestop as well as the continued growth and popularity in cryptocurrencies and NFT’s. All of these were fueled largely by retail investors, but permitting NFT-related mortgages to be tied to the blockchain will open up the $17 trillion mortgage industry to retail investors.

Doing so will potentially permit the average retail investor to profit in the mortgage industry. NFT’s linked to the mortgages will appreciate and the retail investor will be able to see their investment grow while minimizing the potential risk as their investment is tied to real estate as recorded on the blockchain.

Of course, and much like there are still lots of questions that need to be addressed with cryptocurrencies in real estate transactions, there are also lots of questions that still need to be asked and answered before the use of NFT’s in mortgages becomes mainstream. If nothing else, the future for retail investing in NFT’s may provide a sneak peak into the future of mortgage lending.