The CryptoMortgage by Moon Mortgage will soon be available to homebuyers in Texas, Florida, and Colorado, as well as investors in the majority of states in the US for investment properties.
Crypto lending platform Moon Mortgage has secured $3.5 million in a seed round, which according to the company, will be used to launch two new products to the market. The round was led by CoinFund and Cadenza Ventures, and each of them contributed $1.65 million to the round.
Moon stated after the seed round that the money raised will be used to finance two key products, which include a crypto mortgage lending product, CryptoMortgage, that will allow investors to use their cryptocurrency holdings as security for real estate investments.
The new product from the lending platform does this by allowing investors with large enough crypto holdings to collateralize their assets, and then providing them with 100% financing to buy real estate for investment purposes. Investors can also use Moon Mortgage to take out a loan against the value of their digital assets.
The CryptoMortgage from Moon Mortgage will soon be available to homebuyers in Texas, Florida, and Colorado, as well as investors in the majority of states in the US for investment properties.
“People are already incentivized to use their crypto to invest in real estate; the problem is that until now they have never had the ability to,” co-founder and CEO of the company Aaron Nevin told reporters.
“Historically, to buy a home, they would have had to liquidate their assets, lose their upside, and get hit with a massive tax bill. The aim is to bridge the two worlds of crypto and TradFi to make it easy for them to leverage their digital assets,” he added.
Nevin also explained that many investors have made impressive gains by investing in crypto but can’t still use it to purchase a house.
“The convergence of TradFi and crypto is still a long way off, so we want to bridge that gap now and allow investors to not just be able to use their crypto to invest in real-world assets, but to also be able to continue benefiting from their crypto investments in the long term,” the CEO stated.
The company’s digital assets are stored with crypto custodial firm Anchorage Digital, which is a US federally chartered crypto bank.
Anchorage Digital is the only US federally chartered crypto bank and recently expanded its business into the Asian market, stating that the increased scrutiny in that region works in its favor. Diogo Mónica, the co-founder of the company, claimed that Asian institutional investors have revised their stance on cryptocurrency investments following the collapse of the Terra ecosystem.
He stated that until recently, Asian institutions tended to place a greater emphasis on product characteristics than asset security.
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