Privately held Texas homebuilder Megatel Homes LLC said on Thursday it will begin issuing a crypto-based payments and rewards token, marking a rare move by a traditional real estate company into consumer-facing digital assets after receiving regulatory clearance from U.S. authorities.
The announcement followed a “no-action” letter sent late Thursday by the Securities and Exchange Commission, effectively signaling that the regulator does not intend to take enforcement action if Megatel proceeds with its plan as described. Such letters, while not formal approvals, are closely watched by companies seeking to navigate the still-evolving regulatory landscape around cryptocurrencies and blockchain-based products.
Megatel said the new digital token, branded “MegPrime,” represents the company’s first major foray into crypto assets. Chief Executive Officer Zach Ipour said the token is designed strictly for payments and customer rewards, not for investment or speculative purposes.
“The MegPrime token is about utility,” Ipour said in a phone interview. “It’s meant to help customers pay, earn rebates and access tangible benefits related to housing, not to act as a financial security.”
Under the program, consumers will be able to spend MegPrime tokens with regular merchants using a digital wallet and an associated payment card. In return, users can earn rewards in the form of additional MegPrime tokens, discounted gift cards and loyalty points that can later be redeemed for housing-related benefits, including services linked to renting, home purchases or upgrades, the company said.
Megatel emphasized that the token does not confer any ownership or profit-related rights. Holders will have no voting power, no claim on company earnings and no entitlement to profit distributions, features that typically define securities under U.S. law. This distinction was central to the company’s engagement with regulators and to the SEC’s decision to issue a no-action letter.
The move reflects a broader trend of traditional companies experimenting with blockchain technology as it edges closer to mainstream consumer use. From retailers to airlines, firms have increasingly explored tokenized loyalty points, digital wallets and blockchain-based payments as alternatives to conventional rewards programs.
Megatel’s initiative also comes amid a more accommodating regulatory tone toward cryptocurrencies in Washington. President Donald Trump has championed a more crypto-friendly approach, and the SEC under his administration has signaled a willingness to provide clearer guidance rather than relying solely on enforcement actions. Industry executives say that shift has made companies more comfortable testing blockchain-based products that previously might have been considered legally risky.
Ipour said MegPrime builds on a housing-focused innovation the company launched several years ago. In 2019, Megatel introduced a program that credited renters with an amount equal to their previous year’s rent, allowing them to use it as equity toward a home purchase. The tokenized rewards system is intended to extend that concept, linking everyday spending and loyalty incentives more directly to long-term homeownership goals.
“Since we have a multi-billion-dollar operation building homes and we are involved in financing those homes, we believe we can perfect this model and take it to the next level,” Ipour said. “By merging real estate activity with the benefits of digital currencies, we can create a more seamless path from renting to owning.”
While Megatel did not disclose how many tokens it plans to issue initially or on which blockchain the MegPrime system will run, it said issuance would begin in the coming weeks. The company also stressed that the token will be marketed solely for payments and rewards, avoiding language that could encourage speculative trading.
Analysts say the initiative will be closely watched by both the real estate and crypto industries as a test case for how far traditional businesses can push blockchain-based consumer programs within existing regulatory frameworks. If successful, Megatel’s approach could offer a blueprint for other non-tech companies seeking to integrate digital tokens without crossing into the realm of regulated securities.
