TL;DR Breakdown
- Blockchain start-up Milo has announced that it plans to offer Mortgage services to clients.
- The clients will have the freedom to leverage their BTC and other crypto holdings to purchase real estate in the US through the firm.
Miami-based blockchain start-up Milo has announced its plans to offer crypto-mortgage to US citizens. The program will allow people to leverage their crypto stash and purchase real estate in the country. Currently, they are accepting BTC as collateral for 30 years of Mortgage loans.
Fintech firm Milo to offer crypto mortgage services
Milo is among the latest firms to offer crypto services in the world. It plans to allow crypto-backed mortgage plans starting with BTC. The company has also revealed that the service will also be available to international customers.
Their website says that it offers customers an option of not selling their crypto holdings for the mortgage’s down payment. They want people to keep holding to their stash as they invest in real estate and watch their money grow. It has also given these services to some customers. But it expects the others on its waitlist to be served in the coming months.
Even though the service by Milo is exciting, it is yet to explain how many BTC coins are needed to secure the loan. It also has not explained how they plan to balance the coin’s volatility in the mortgage loan.
Milo joins the crypto sphere through crypto-backed mortgage loans
The mortgage firm Milo raised about $6 million from a funding round with investors like 10X Capital last January. It is currently offering crypto-backed mortgage loans to give its clients multiple options while investing in real estate.
According to its founder and CEO, Josip Rupena, the motivation behind the company came from watching many sell their BTC to secure such services. Such people regret after the value of the coin increases shortly following their cash out. He added that the available ways of accessing home credits also come with issues like unintended tax liabilities.
Rupena also noted that the firm’s alternative for international investors has served millions of dollars and has applications from 63 countries. The alternative services offer international investors a chance to close housing loans remotely by removing the traveling needs from an embassy or the country.
On JAN 17, 2022, Miami Mayor Francis Suarez introduced Rupena at the North America Bitcoin Conference. Suarez noted that BTC mortgages are groundbreaking achievements to push the US forward in BTC dominance. He added that Miami needs such innovative firms to continue growing.
Even though Milo believes it is the premiere crypto-backed mortgage firm, it is not. Last August, United Wholesale Mortgage began testing crypto-backed loans. It conducted a pilot program involving BTC and ETH. Two months later, it revealed that it was moving away from those plans due to regulatory concerns.
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