TerraZero Technologies last week issued one of the first-ever mortgages in the metaverse, a network of virtual worlds where users can interact, experience entertainment and trade.

The tech firm issued the two-year mortgage with an undisclosed down payment and interest rate for a $45,000 parcel of land in Decentraland, a metaverse with approximately 92,000 parcels, TerraZero said. The firm followed a traditional real estate mortgage vetting process, self-financed the purchase and today holds the NFT, or non-fungible token to securitize the mortgaged land.

TerraZero is now building a relationship with an unnamed banking partner to expand its mortgage capabilities and is creating a metaverse real estate platform, Amadea, which may resemble the ubiquitous real estate search websites where users can find property and calculate mortgages.

National Mortgage News spoke with TerraZero CEO and founder Dan Reitzik about the financing of virtual properties. Questions and answers have been edited for length and clarity.