Miami-based fintech startup Milo is offering what it claims is the world’s first “cryptocurrency mortgage.” Digital banks allow cryptocurrency investors to leverage their digital assets to purchase real estate in the United States
At this time, only customers who wish to use Bitcoin (BTC) as collateral are eligible for the 30-year Milo Mortgage Loan. Both US and international customers can use the service to purchase real estate in the US state of Milo’s website:
“Instead of selling your cryptocurrency for a down payment to qualify for a mortgage, crypto mortgages allow you to leverage your cryptocurrency to invest in real estate.”
Miro has already made several loans as part of the early access phase and expects most of the waiting list applicants to be able to use the service within the next few months. ..
The amount of BTC required to secure a loan, or the level of excess collateral required to balance the volatility of the digital asset, is still unknown. Cointelegraph is asking Milo for more details and will update this story with a reply.
Breaking news: You can now buy a home with # bitcoin As a security with the mortgage company Miro and as a zero deposit.
– Bitcoin Archive (BTC_Archive) January 18 2022
Giuseppe Rubina, CEO and founder of Milo, said the idea came when he saw the “endless stories” of people buying real estate by cashing in BTC and later seeing it increase in value. He said that.
“Existing ways for crypto consumers to access home credits leaves them with the unintended tax burden of selling down payments and compounding the opportunity cost of increasing the value of cryptocurrencies.”
According to Miro, the company’s other foreign mortgage solutions have already started lending millions of dollars and have applicants from more than 63 countries. This allows customers who are not based in the US to remotely close their home loans without having to go to the US or the embassy.
Introducing Lupena at the Bitcoin North American Conference on January 17, Procrypt Mayor of Miami Francis Suarez said that Bitcoin mortgage lending is a “major achievement” to cement US dominance in the Bitcoin ecosystem. “.
“For Miami to become the capital, you need a company like Milo that is willing to innovate and think,” he added.
Milo is not the first company to target crypto mortgages.
In August 2021, United Wholesale Mortgage began testing bodies of water for mortgage payments using the cryptocurrency Ether and BTC in its beta program. However, by October, the plan had been abandoned due to regulatory uncertainty.
Related: Propy will increase in value by 227% when real estate NFTs become a reality and Pro is listed on Coinbase
Milo raised $6 million in seed funding from QED, Metaprop, 10x Capital, and other investors in January 2021.
Robina previously worked for the multinational investment banking firms Morgan Stanley and Goldman Sachs.