A new homeowner in Austin, Texas, has purchased an apartment via a platform that allows cryptocurrency holders to obtain standard uncollateralized mortgages based on their credit scores.
The USDC.homes crypto mortgages platform made its first crypto loan to an Austin resident who purchased a $680,000 apartment with a $500,000 USD Coin (USDC) stablecoin loan via the Polygon network. USDC.Homes, a startup that works with mortgage lenders and brokers to help people get crypto home loans, has executed its first transaction through DeFi lending protocol Teller.
This new platform mixes traditional lending practices like relying on a borrower’s credit score to assess eligibility with emerging decentralised finance (DeFi) innovations like cryptocurrency staking to assist pay off the debt.
The platform issues loans in USD, but borrowers can pay with Ether (ETH), Bitcoin (BTC), or USDC. It was created with the Teller lending system and is backed by the TrueFi project, which provides uncollateralized cryptocurrency loans. USDC.homes can offer 30-year mortgages worth up to $5 million with a 5.5 percent interest rate and a 20% down payment.
Each borrower’s down payment is staked rather than sold, and it accumulates interest that may be used to assist homeowners pay off their loans. The usual necessity to liquidate one’s crypto assets for fiat to receive a loan exposes American borrowers “to the damages of taxation, fees, and a loss of position,” according to a Wednesday blog post from Teller.
According to CEO Karl Jacob, LoanSnap has issued “billions of dollars” in traditional mortgages utilizing an artificial intelligence (AI) loan origination technology. His company’s services have also expanded into the crypto realm, with Bacon Protocol collaborating with DeFi lender to link mortgage values to a nonfungible coin (NFT)
