This Crypto Company Launched The World’s First Bitcoin-Based Mortgage Product
A crypto company has just announced a first-of-its-kind Bitcoin-based mortgage product. The announcement follows after Global financial services provider and digital asset savings and credit platform Ledn Inc., revealed on Wednesday, that it has successfully completed a $70 million Series B funding round, bringing its valuation to $540 million.
And while the round was led by10T Holdings, Ledn also had some new investors participating in the round, including the Raptor Group, FJ Labs, and the Golden Tree Asset Management, among others.
Meanwhile all Ledn’s existing venture partners also partook in the round, including Coinbase Ventures, Glober Founders Capital, CMT Digital, Hashed, White Star Capital, Alan Howard, Kingsway Capital, Parafi Capital, Susquehanna Private Equity Investments, John Pfeffer, and Ascendant Capital.
Bitcoin-based Mortgage Product In The Offing As Ledn Looks To Spend Funds Judiciously
As earlier mentioned, Ledn also announced its plans to launch the world’s very first Bitcoin-based mortgage product. And according to the company, its clients would be able to use their Bitcoin holdings to purchase properties, even as they continue to enjoy the dividends of both assets’ potential price surges.
This simply means that, as part of a mortgage loan, clients can seamlessly use an amount worth of Bitcoin in place of an equal amount of property collateral.
Interestingly, this collateral structure is designed in such a way that the stable nature of real estate, can provide a sort of support for the ever-volatile nature of Bitcoin. With this, clients have some good amount of time to service their Bitcoin collaterals in times of high market volatility.
At the moment, the Bitcoin-based mortgage product is in pilot mode, but slated to be made available for public use by early 2022.
Beginning with the US and Canada, Ledn already has a fast-growing waitlist for the product, and has already pegged its Q1 2022 expectations for Bitcoin-based mortgage originations, to over $100 million.Source