Milo, a Miami-based fintech startup is launching the world’s first crypto mortgage offering for a 30 year-term. Instead of selling one’s bitcoin holdings for mortgage payments, the company now lets Americans and international customers use their Bitcoin stacks as collateral for purchasing real estate in the US. The solution allows clients to continue with their Bitcoin holdings while diversifying into real estate, all the while keeping the potential price appreciation of both. Commenting on the development, Josip Rupena, Milo founder and CEO, said: “There are countless stories of people buying property with bitcoin proceeds only to see it increase in value and be worth millions more. With our new crypto mortgage, we can expand our offerings to consumers that were previously denied by other banking firms just for having crypto. We have an opportunity to make sure that doesn’t happen anymore and their bitcoin wealth can now help them buy a property.” Milo has already granted some loans as part of its early-access stage, and expects the service will be available to most applicants on its waiting list in the coming months. However, as of yet, it remains unclear as to how much Bitcoin (BTC) will be needed to secure a loan, or the level of over-collateralization needed to balance out the cryptocurrency’s volatility. Miami Mayor Francis Suarez, a proponent of bitcoin, also commented on Milo’s new offering, in a statement that the bitcoin mortgage is a “groundbreaking achievement” for advancing U.S. dominance in the Bitcoin ecosystem. “To become the Capital of Capital, Miami needs companies like Milo who are willing to innovate and ideate,” he added. Milo isn’t the first company to dabble into crypto mortgages. In Aug 2021, United Wholesale Mortgage tested crypto mortgage repayments with Ether (ETH) and Bitcoin (BTC) in a pilot program. However, a month later, the plan was scrapped due to regulatory uncertainty.
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