Crypto mortgage company Milo Credit brings global digital asset users access to financial solutions away from traditional finance.
Despite the crypto winter, the crypto space appears to be powering on. Milo Credit has revealed that they have eradicated about $10m in crypto mortgages in the United States of America. Their 30-year crypto mortgage got only offered to market last April.
The entity highlighted that the product is the world’s first crypto mortgage offering, making it easy for investors to employ their digital assets to purchase properties.
Josip Rupena, the CEO of Milo, said that the success of their crypto mortgage over the past few months is proof of their ability to pioneer and generate a unique solution for the crypto community.
The company also expressed that they live an incredible momentum and observe a primordial need to assist individuals so it can diversify their wealth and generate real-world yield through real estate.
In today’s volatile scenario, their crypto mortgage is the most prominent solution for customers who wish to continue to own crypto and invest in real estate, all while keeping the potential price appreciation.
Crypto Mortgage – A First
Milo expressed that they were the first fintech to bring a mortgage that unites crypto assets with traditional finance. These investors qualify for the mortgage with Bitcoin, Ethereum, and USDC.
To acquire a property, clients can pledge their crypto with insured custodians (Gemini and Coinbase) and finance up to 100% of their purchase without the down payment. Those who qualify can receive benefits of low-interest rates and a 30-year crypto mortgage of up to $5 million.
Miami Mayor Francis Suarez said that bridging the gap between traditional finance and crypto is one of the most vital moves to make digital assets and blockchain more present in people’s lives. With their mortgage product, Milo has already proven that the future of finance will be helpful to building wealth like the financial tools of the past.
Real Estate and Building Wealth
The company says that real estate is vital for building wealth over time. Crypto users have lacked the opportunity to purchase real estate, so they have used riskier methods of generating income.
The entity expressed that they have given crypto mortgage pre-qualification to thousands of borrowers. This situation happens for borrowers to know their capacity. Milo’s mortgage solution for the U.S. and foreign nationals has already generated over $100 million in loans and has observed applicants from over 90 nations worldwide.
Heightened Risk
According to John Kerschner, head of U.S. securitized products for Janus Henderson Investors, using such a volatile asset to feed the finances is a risk.
A crypto mortgage appears to show deficiencies due to the volatility. According to John, People think Bitcoin will grow, but nobody thought the financial decline or a pandemic was coming to make things worse.
To account for crypto’s greater volatility, borrowers must put up more digital assets or cash if the crypto-to-loan ratio falls below 65 percent. However, if that figure crumbles below 30%, Milo then liquidates the currencies and keeps them in U.S. dollars.
By: Jenson Nuñez
