Nikolas Sargeant
Megatel Homes, a privately held homebuilder in the United States, has announced the launch of a cryptocurrency payments and rewards token called "MegPrime" after receiving a "no-action" letter from the Securities and Exchange Commission authorizing the digital asset's issuance.
The Dallas-based company received regulatory clearance to launch the universal payments token, marking Megatel's first entry into the digital assets sector. The MegPrime token converts everyday spending into unified rewards, enabling households to earn back a portion of money spent on housing and related expenses.
Zach Ipour, co-founder of Megatel Homes, stated the token represents the company's initial foray into blockchain-based financial products. "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," Ipour explained.
Megatel emphasized that MegPrime tokens will be marketed exclusively as a payment mechanism to earn rewards rather than as investment securities. The company plans to begin issuing tokens in the coming weeks, according to Reuters. The distinction addresses SEC concerns about digital assets being offered as unregistered securities.
Users who pay rent or mortgage payments using the tokens through the MegPrime app may earn up to 20% back in token rewards. These rewards can be redeemed for everyday purchases including groceries and utility bills, according to the company statement. The substantial cashback rate significantly exceeds typical credit card or traditional rewards program returns.
MegPrime token rewards can also be converted to US dollars, providing liquidity and flexibility for users who prefer traditional currency. The conversion capability addresses common concerns about cryptocurrency volatility and usability in everyday transactions.
Renters using tokens are eligible to receive 100% of their past 12 months of rent, up to $25,000, toward a future home purchase. The provision creates a pathway to homeownership for renters while incentivizing adoption of the token payment system within Megatel's ecosystem.
"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," Ipour told Reuters, highlighting the company's integrated business model.
Real estate companies are increasingly integrating blockchain technology into mainstream consumer-based programs. The US Federal Housing Finance Agency has been exploring the role of cryptocurrency holdings in mortgage qualification processes, signaling broader industry movement toward digital asset integration.
FHFA director Bill Pulte, a vocal cryptocurrency supporter, stated last year the agency is studying cryptocurrency usage in mortgage qualification criteria. The regulatory exploration suggests potential future frameworks for incorporating digital assets into traditional real estate finance.
