Miami-based fintech startup Milo is unveiling what it claims to be the world’s first “crypto mortgage.” The digital bank will allow cryptocurrency investors to leverage their digital assets to purchase real estate in the United States..
At the moment, only customers who want to use bitcoin (BTC) as collateral are eligible for the 30-year Milo home loan.. Both US and international customers will be able to use the service to purchase US real estate. Milo’s website states that:
“Instead of selling your crypto for a down payment and trying to qualify for a mortgage, a crypto mortgage allows you to leverage your crypto to invest in real estate.”
Milo has already granted some loans as part of his early access stage and expects the service to be available to most applicants on its waiting list in the coming months.
It remains unclear how much BTC will be needed to secure a loan, or the level of overcollateralization needed to balance the volatility of the digital asset.. Cointelegraph has asked Milo for more details and will update this article when we hear back.
BREAKING: You can now buy a house using #bitcoin as collateral and ZERO fiat deposit with mortgage lender Milo.
—Bitcoin Archive (@BTC_Archive) January 18, 2022
BREAKING NEWS: You can now buy a house using #bitcoin as collateral and ZERO fiat deposit with mortgage lender Milo.
Josip Rupena, CEO and founder of Milo, said that the idea came about as a response to seeing the “countless stories” of people who cashed in their BTC to buy a property, only to see the cryptocurrency increase in value afterwards.
“Existing ways for crypto consumers to access home credit have left them with the involuntary tax liability of selling for a down payment or, worse yet, the cost of missing out on seeing the value of their crypto rise. “.
According to Milo, its other mortgage solution for foreigners has already originated millions of dollars in loans and has had applicants from more than 63 countries. This allows clients not based in the United States to finalize their home loans remotely, without the need to travel to the United States or to an embassy.
Introducing Rupena at the North American Bitcoin Conference on Monday, pro-crypto Miami Mayor Francis Suarez said that bitcoin mortgage is a “groundbreaking achievement” in advancing US dominance in the bitcoin ecosystem.
“To become the Capital of Capital, Miami needs companies like Milo that are willing to innovate and invent“, he added.
Milo is not the first company to have its sights set on a cryptocurrency mortgage.
In August 2021, United Wholesale Mortgage began testing the environment for cryptocurrency mortgage repayments with Ether (ETH) and BTC in a pilot program.. However, by October, he had scrapped his plans due to regulatory uncertainty.
Milo raised $6 million in seed funding from investors, including QED Investors, Metaprop and 10X Capital in January 2021.
Rupena has worked in the investment banking multinationals Morgan Stanley and Goldman Sachs.
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