A property owner in Huerfano County, Colorado decided to sell a parcel that had been tokenized through Fabrica. The property had been held in a Fabrica trust with ownership represented by an onchain token. No transfers or loans had occurred during the tokenization period. The owner simply wanted to move the property back into the traditional system and sell it the conventional way.

This meant terminating the trust, burning the token, and recording a deed. Straightforward in theory. But for the local title company handling the closing, it raised a question they had never encountered: does a property that went through a tokenization trust produce clean title?

The escrow officer escalated to First American Financial's underwriting department. First American is the largest title insurance company in the United States, publicly traded (NYSE: FAF) with over $6 billion in annual revenue. Their underwriters evaluate title risk for a living.

The underwriting team reviewed Fabrica's trust structure, the token mechanics, and the termination process described in the Trust Agreement. They escalated further to First American's corporate headquarters in Santa Ana, California. After a thorough review, underwriting drafted the specific affidavit language the seller would need to sign, referencing the trust termination and token burn. The escrow officer confirmed the property was clear to close.

The transaction closed. The buyer received title insurance from First American. The property changed hands like any other real estate sale.

This was a simple case. The property was tokenized, held in the trust without any onchain activity, and then off-ramped back to traditional ownership. No transfers, no lending, no complex history.

But that simplicity is precisely what makes the result significant. If a tokenized property that simply entered and exited a trust could not clear title insurance, nothing more complex would ever work. This was the baseline test, and it required First American's corporate underwriting team to reach a determination.

What their review validated was not a specific transaction. It was the trust structure itself: the mechanism by which title enters the trust, is controlled by a token, and exits cleanly when the trust terminates. Their underwriters concluded that this process produces the kind of traceable chain of title that institutional title insurance requires.

A property owner in Huerfano County, Colorado decided to sell a parcel that had been tokenized through Fabrica. The property had been held in a Fabrica trust with ownership represented by an onchain token. No transfers or loans had occurred during the tokenization period. The owner simply wanted to move the property back into the traditional system and sell it the conventional way.

This meant terminating the trust, burning the token, and recording a deed. Straightforward in theory. But for the local title company handling the closing, it raised a question they had never encountered: does a property that went through a tokenization trust produce clean title?

The escrow officer escalated to First American Financial's underwriting department. First American is the largest title insurance company in the United States, publicly traded (NYSE: FAF) with over $6 billion in annual revenue. Their underwriters evaluate title risk for a living.

The underwriting team reviewed Fabrica's trust structure, the token mechanics, and the termination process described in the Trust Agreement. They escalated further to First American's corporate headquarters in Santa Ana, California. After a thorough review, underwriting drafted the specific affidavit language the seller would need to sign, referencing the trust termination and token burn. The escrow officer confirmed the property was clear to close.

The transaction closed. The buyer received title insurance from First American. The property changed hands like any other real estate sale.

This was a simple case. The property was tokenized, held in the trust without any onchain activity, and then off-ramped back to traditional ownership. No transfers, no lending, no complex history.

But that simplicity is precisely what makes the result significant. If a tokenized property that simply entered and exited a trust could not clear title insurance, nothing more complex would ever work. This was the baseline test, and it required First American's corporate underwriting team to reach a determination.

What their review validated was not a specific transaction. It was the trust structure itself: the mechanism by which title enters the trust, is controlled by a token, and exits cleanly when the trust terminates. Their underwriters concluded that this process produces the kind of traceable chain of title that institutional title insurance requires.