Real Estate FinTech Milo To Launch First U.S. Bitcoin Mortgage Offering
On Wednesday, the cryptocurrency firm BitGo, Inc. announced a new product called Digital Asset Collateralized Loans (DACLs), which allows real estate investors to secure mortgages by using their bitcoin as collateral.
This is made possible through the use of blockchain technology and full-stack cryptocurrency company MILO’s U.S.-based financial lending partners who have made $1 billion in home loans available.
The goal of this partnership with MILO is to provide an alternative for those currently unable to borrow against their homes or find difficulties doing so due to low amounts of equity, poor credit history or expensive loan requirements.
“The traditional method of borrowing against one’s home can be hampering for many people,” said MILO CEO Andrew Jude. “Houses are often one of the most illiquid assets that a person owns and can be difficult to convert into cash in a short amount of time,”
BitGo’s DACLs work by using smart contracts on MILO and its lending partners’ mortgage systems to allow for borrowers to secure loans in bitcoin instead of fiat currencies like the U.S. dollar or euro. The loan is maintained with automatic receipts, payments, updates and assignments recorded on blockchain technology via BitGo’s Loan Regtech System (LRS), which helps lenders keep track of all records associated with each transaction.
MILO will be providing more information about their new Digital Asset Collateralized Loans product at their upcoming blockchain conference to be held in Los Angeles on February 9th.