Lofty is Bridging DeFi and TradFi

Introducing Lofty Wallet

Lofty’s mission is to democratize real estate investing, and a key to making that possible is building on a blockchain. One challenge tied to building on a blockchain is that users must set up and manage a crypto wallet. This is easy for many crypto-natives but it is a massive barrier for the vast majority of potential users.

To democratize real estate investing, we must also democratize crypto wallets, and we have done just that. Today we launched Lofty Wallet, which eliminates the need for a crypto wallet before joining Lofty and gives you the benefits of blockchain technology without the headaches.

Lofty Wallet is a multi-signature (aka “multi-sig”) crypto wallet that you own and control. Included natively in your Lofty account, it strikes an optimal balance of ease of use, security, and control that is unrivaled by traditional wallets. Lofty Wallet bridges the gap between traditional finance (TradFi) and decentralized finance (DeFi). It provides the benefits of both, without the drawbacks of either.

Lofty Wallet is the first multi-sig wallet to be embedded in an app that brings real world assets onto the blockchain for practical use and valuable diversification. We are excited to raise the bar for our industry and provide everyone with a safe, user-friendly passport to the world of Web3, DeFi, and crypto.

The Status Quo

Most people are familiar with two types of wallets: a custodial wallet and a self-custody wallet.

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Custodial Wallet

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A custodial wallet is what you have with your Coinbase, FTX, and Binance account. If you can log into your account with these platforms, you can access your funds.

However, custodial wallets are not fully controlled by you, and do not come with a guarantee that you can access your assets under any circumstance. As the hosts of the popular crypto podcast Bankless chant every episode, “Not your keys, not your wallet”. Additionally, you can’t take your custodial wallet with you if you leave the associated platform; you must transfer the assets elsewhere. Collectively, this centralization is a major drawback of the traditional finance foundation of major crypto exchanges.

Centralized platforms typically have robust safeguards for users, but not always — billions of dollars held by users in custodial wallets have been locked or lost in just the bankruptcy of Voyager and Celcius alone.

‍Takeaway: Custodial wallets offer ease of use at the expense of control.

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Self-custody Wallet

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Self-custody wallets are provided by solutions like Pera Wallet and Metamask. You create the wallet, save the keys, and are in full control of the holdings without platform lock-in.

Your keys, your wallet, but with notable downsides.

The #1 issue? You lose your wallet assets if you lose your wallet keys or if a bad actor gets your keys. There are endless horror stories of people who have lost enormous holdings because of a phishing attack or because they lost the scrap of paper where the passphrase key was written.

An additional downside of self-custody wallets is that they are clunky to set up and have a steeper learning curve to effectively manage. Some crypto-natives may scoff at this notion, but many will admit this is true. More problematic is that the self-custody wallet learning curve is a blocker for billions of people globally who are potential adoptees of crypto technology.

This learning curve is a critical issue and massive opportunity, and Lofty tackled it head on.

Takeaway: self custody wallets offer control at the expense of ease of use and security.

The Path Forward

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Lofty believes that everyone deserves a wallet that is easy to use, secure, fully controlled, and flexible. We make this possible for you with Lofty Wallet:‍

Easy to Use

Lofty Wallet streamlines a multitude of wallet management actions required by traditional self-custody wallets (e.g. Pera Wallet):

• It eliminates the need for you to set up a crypto wallet before using Lofty
• It automatically opts in to new property tokens that you invest in
• It automatically opts in to every cryptocurrency supported on Lofty
• It automatically authenticates transactions that you execute in Lofty without requiring additional signing via an external wallet app
• It is automatically verified for use in Lofty’s secondary market, meaning that it is established as a trusted wallet controlled by a user with a verified identity

Secure

Lofty Wallet gives you peace of mind with multi-signature technology. The wallet has two keys, one held by you and one held by Lofty.

• You can take action on your wallet without needing Lofty's set of keys, which are encrypted and safeguarded similar to how your bank would secure your bank account
• If your keys are lost or compromised, you can still access Lofty Wallet via your Lofty Account and transfer your assets to a new Lofty Wallet or external wallet.
• If you choose to withdraw rental income as cryptocurrency, you know that you are sending it to a trusted wallet, removing the risk of sending rental income to the wrong wallet or a wallet that you can no longer access (it happens!)

Controlled by You

You control Lofty Wallet; your keys, your wallet. Under no circumstances can you be locked out of your Lofty Wallet since you have the keys, and the keys cannot change.

Flexible

Lofty Wallet makes it easy to enjoy the benefits of blockchain technology. Just like any other self-custody crypto wallet, Lofty Wallet can be used for transactions outside of Lofty.

You can take the Lofty Wallet with you, without platform lock-in, and optionally add it to other Algorand wallet managers or your Ledger device.

What this Means for You

If you are an existing Lofty user, we invite you to switch your default wallet to Lofty Wallet for a more seamless, secure experience. Here is how to switch from Pera Wallet and from MyAlgo.

If you are not yet a Lofty user, we invite you to get started — click here to sign up and you will get a $25 gift certificate after making your first investment. Your Lofty Wallet will be waiting for you once you complete sign up.

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