RWA · Real Estate · LOFTY
Lofty.ai offers fractional US real estate on Algorand — sub-cent transactions, a $50 minimum, and per-property ASA (Algorand Standard Asset) governance. Daily rental yield is distributed in USDC.
Fractional US real estate on Algorand.
Assets under management
$100.1M
Latest data · 15 min delay
Algorand-based fractional real estate with $50 minimums and per-property ASA governance; daily USDC rental yield.
Each property is held by a dedicated US limited liability company (structured as a DAO LLC) that takes title to the home; token holders are the members and collectively own and govern the property.
Ownership units are minted as Algorand Standard Assets, priced at $50 each at launch. Each token represents a fractional membership interest in the property's LLC.
Lofty's storefront where newly listed, AI- and locally-vetted rental properties are offered to investors, who buy tokens from as little as $50 with no accreditation requirement.
An on-platform exchange (marketed as the 'NASDAQ for real estate') with a Proactive Market Maker and liquidity pools that let holders buy and sell property tokens with near-instant liquidity and no lockup.
Net rental income is streamed to token holders daily (deposited nightly, proportional to ownership), payable to the Lofty account, bank/PayPal, or as Algorand-based assets such as USDCa.
The app auto-creates and custodies an Algorand wallet for each user so non-crypto investors can transact without handling keys or learning blockchain mechanics.
Token holders vote on property-level decisions such as repairs, appliance replacement, rent changes, tenant issues, and whether to sell the property.
Each property is a Reg D 506(c) US LLC; Lofty Inc. as manager.
Lofty.ai~148 tokenized properties across 11 US states, ~7,000 monthly active users, ~231 buyers per property on average, and $2M cumulative rental income paid.
Algorand case study - LoftyOver $5M raised; backers include Y Combinator (S19), Rebel Fund, Jason Calacanis and Hustle Fund.
PRNewswire - Lofty launch$50 minimum; each property token priced at $50 at launch, sold to accredited and non-accredited US investors after KYC.
Y Combinator - Lofty company profileHow Lofty.ai maps onto established TradFi structures, and where it diverges.
Single rental property (direct landlord ownership)
Lofty.ai
Investors gain direct fractional exposure to a specific, identifiable US rental house and receive its rental cash flow plus any appreciation, just like owning a rental outright.
TradFi analogue
Entry is $50 instead of a full down payment; ownership is fractional via LLC tokens; rent is paid daily and automatically; property management is handled for holders; and stakes can be sold in minutes on the secondary market rather than via a months-long sale.
REIT (Real Estate Investment Trust)
Lofty.ai
Pools many investors into professionally managed income-producing real estate and distributes rental income; accessible to non-accredited investors.
TradFi analogue
Lofty lets investors pick individual properties (not a blind pooled portfolio), pays rent daily rather than quarterly dividends, is settled on-chain on Algorand, and gives holders direct governance votes on each property; it is not an SEC-registered '40 Act fund and offers property-level rather than diversified exposure.
Lofty AI, Inc.
Operating company / platform Delaware-incorporated proptech company (HQ variously reported in Miami, FL and Los Angeles/San Francisco, CA) that operates the marketplace, mints tokens, vets properties and administers the property LLCs. Founded 2018; Y Combinator Summer 2019 batch.
Property DAO LLCs
Asset-holding SPVs Per-property US limited liability companies that hold legal title to each home. Token holders are the members; Lofty acts as the initial manager/administrator until governance is handed to holders.
Seed / Y Combinator (S19)
2019-08-19Undisclosed (part of $5M+ total)
Key milestones: launches, upgrades, exploits and governance events.
Lofty founded
ExecutedLofty founded (originally an AI tool to help investors find optimal neighborhoods) by Jerry Chu and Max Ball, later pivoting to fractional tokenized real-estate ownership.
SourceY Combinator (S19) and seed funding
ExecutedLofty participated in Y Combinator's Summer 2019 batch and raised seed capital, later totaling over $5M from YC, Rebel Fund, Jason Calacanis and Hustle Fund.
SourceMarketplace launch on Algorand
ExecutedLaunched the tokenized liquid real-estate marketplace on Algorand with $50 minimum tokens and daily rent.
SourceSecondary trading via PMM and liquidity pools
ExecutedLofty operates a secondary marketplace with a Proactive Market Maker (PMM) and liquidity pools enabling near-instant token trading for real estate, extending its 'liquidity pool / AMM for real estate' roadmap.
SourceEach property is placed in a dedicated US LLC (a DAO LLC) that holds title to the home. Investors buy Algorand Standard Asset tokens that represent membership interests in that LLC, so they own a fractional share of the property collectively rather than the deed directly.
Net rent is distributed daily, proportional to the tokens held. Payouts accrue nightly to the user's Lofty balance and can be withdrawn (e.g. bank/PayPal) or received as Algorand assets like USDCa, or reinvested.
$50 - the price of a single property token at launch. There is no accredited-investor requirement, so both accredited and non-accredited US investors can participate after KYC.
Yes. Lofty runs a secondary marketplace with a Proactive Market Maker and liquidity pools, so tokens can be traded with near-instant liquidity and no mandatory lockup, unlike traditional real-estate funds.
Algorand. Lofty chose it for near-instant (3-4 second) finality and very low fees (around 0.001 ALGO per transfer), which makes daily on-chain rent payments and micro-sized token trades economical.
This is contested. Lofty structures tokens as LLC membership interests and has publicly taken the position that they are not securities, but many legal commentators note that under the Howey test tokenized real estate offerings promising passive rental income can be treated as investment contracts subject to SEC jurisdiction.
