Archetype

Synthetic digital assets are decentralized finance’s version of financial derivatives where the value of the synthetic asset is determined by some underlying asset without the owner having to own the underlying.  Synthetic digital assets gaining popularity in the decentralized world as they open up new investment opportunities by providing both increased access and liquidity.  For real-world assets that have a high cost of entry, like real estate, synthetics are able to provide the same benefits of actual ownership but without the massive capital outlays required.  Parcl has built a synthetic asset protocol that allows investors to buy and sell digital real estate based on geography, both broadly or at a granular (neighborhood) level.  The company’s protocol offers a digital representation of property values, categorized by neighborhood as “Parcls”, for various cities that dynamically mimics the real-world conditions in these markets through the creation of price indexes. Parcl investors can speculate on appreciation and depreciation without the burden of physical property ownership and transact inexpensively without any investment minimums. The protocol is built on Solana, which is well suited to handle a large number of transactions with minimal transaction costs while providing the added benefit of instant liquidity, unlike actual real estate. At a time when homeownership is at multi-decade lows and the cost of housing is surging, Parcl also represents an opportunity for investors to hedge ownership of real assets and as the protocol builds synthetic assets, solutions can be devised to meet more sophisticated needs. AlleyWatch caught up with Parcl CEO Trevor Bacon to learn more about the business, the company’s strategic plans, latest round of funding, which brings the total equity funding raised to $11.5M, and much, much more…