Lending
Fabrica property tokens can be used as collateral for loans, allowing owners to access liquidity without selling their property. This unlocks capital for landowners who would otherwise face significant barriers when seeking traditional bank financing, banks typically won't lend on raw land.
Through the pool-based integration, borrowing is near-instant and programmatic: because the collateral is a standard token with a public, signed valuation feed, a quote is available immediately, without waiting for a counterparty. A single owner can draw liquidity against a parcel in minutes, and an owner holding many properties can borrow against each without a separate closing, refinancing, or origination cycle (drawdowns and pool withdrawals depend on available pool liquidity). Peer-to-peer loans, by contrast, are negotiated directly with a lender rather than drawn from a pool.
If you are a lender or capital allocator rather than a borrower, see For Capital Providers.
For live lending statistics, see our Dune dashboard.
How It Works
When you take a loan against your property token:
- Collateralization: Your property token is locked in a lending protocol's smart contract
- Funds Received: You receive loan funds (typically in stablecoins)
- Ownership Retained: You remain the beneficial owner of the property during the loan
- Repayment: Upon repayment, your token is returned
- Default: If you fail to repay, the lender can claim the property token
While your token is held as collateral, you retain full rights to use and access the property. The lending protocol holds the token as security, but you remain the owner in every practical sense.
Lending Options
The live, integrated lending path on Fabrica is pool-based and near-instant.
| Protocol | Model | Status |
|---|---|---|
| Pool-Based Lending | Pool-based | The primary live integration: instant liquidity for borrowers, passive diversified exposure for lenders. |
| Peer-to-peer | Direct | Use any NFT-supporting lending protocol (Gondi is a good option today). NFTfi was the former in-app integration and has shut down. |
Because property tokens are a standard, the protocol is not tied to any single lending venue: it works with any NFT peer-to-peer lending protocol (such as Gondi), runs on a pool-based path in-app, and can support new venues as they emerge, with no change to the token. Its first peer-to-peer integration, NFTfi, has since shut down.
For Borrowers
Loans are made by third-party lending protocols and pool participants, not by Fabrica. Fabrica builds the collateral rails and surfaces the offer; it is not the lender, broker, or guarantor of any loan.
Benefits:
- Access capital without selling your property
- Lenders price off the property and its valuation rather than your personal credit, so there is no personal credit check or bank approval
- Funds available in minutes, not weeks
- Retain property rights during the loan
Considerations:
- Interest rates vary by protocol and property value
- Failure to repay results in loss of the property token (see Loan Defaults & Liquidation)
- Property taxes and obligations remain your responsibility during the loan
For Lenders
If you provide capital, see For Capital Providers for how to lend through a pool or build your own underwriting, and Lender Protections for the UCC Article 8 and Article 12 framework.
Security
Fabrica's trust structure provides lenders with strong security:
- UCC Compliance: The trust agreement includes provisions under UCC Article 8 and Article 12, allowing lenders to perfect their security interest without additional filing
- Reliable Collateral: Upon default, the property token transfers to the lender or is auctioned to repay the loan
- Transparent Ownership: Ownership is verifiable both onchain and at the county recorder
See Lender Protections for details on the legal framework protecting lenders.