BSV
$66.22
Vol 88.33m
-1.82%
BTC
$99420
Vol 91905.82m
1.44%
BCH
$487.06
Vol 986.09m
0.44%
LTC
$90.59
Vol 1142.59m
1.88%
DOGE
$0.39
Vol 14256.03m
3.71%
Getting your Trinity Audio player ready...

There are a number of companies that are beginning to offer programs to allow cryptocurrency holders to use their assets for loans and other financial solutions. Now, the world’s first crypto-backed mortgage has been launched and it could be a definite game-changer moving forward.

Nexo, a crypto lending platform out of Switzerland, issued the mortgage to Brock Pierce, the child start of the Mighty Ducks movies and an established crypto enthusiast. The home is located in Amsterdam and is reportedly worth $1.2 million, and backed the entire loan with Bitcoin Core (BTC).

Nexo’s co-founder and managing partner, Antoni Trenchev, explain to Fox Business, “So we take that bitcoin and other digital currencies as collateral using a third party qualified custodian to store it and give them fiat cash for it. But neither the client nor us have access to the coins.” He adds that the customers have instant access to loans of up to $2 million in 45 different fiats and that funds can be available within 24 hours.

Pierce asserts that the new platform can be the bridge between the “old world of traditional finance and the brand new frontier that blockchain now enables,” adding, “Being able to borrow against one’s crypto assets gives one options, when wanting to purchase a property, and aligns with my philosophy that real estate and tokenization will be a quadrillion-dollar market. I was able to hold on to my crypto and settle the transaction in fiat.”

There’s another benefit to deals like Pierce’s mortgage, at least under the current laws. If Pierce were to purchase the home for cash by converting his crypto to fiat, he would also be forced to pay taxes on those converted assets—they would be seen as capital gains. By leaving them intact as digital assets, he is able to cover the mortgage using his holdings and save himself from a major tax nightmare.

Nexo isn’t the first company to get into crypto lending market—BlockFi and Celsius are well entrenched. However, the market is growing and is proving to be popular among those who don’t want to give up their crypto holdings. Just like with fiat, the ability to receive credit with crypto assets is going to prove to be a powerful tool that could drive adoption higher.

Recommended for you

Lido DAO members liable for their actions, California judge rules
In a ruling that has sparked outrage among ‘Crypto Bros,’ the California judge said that Andreessen Horowitz and cronies are...
November 22, 2024
How Philippine Web3 startups can overcome adoption hurdles
Key players in the Web3 space were at the Future Proof Tech Summit, sharing their insights on how local startups...
November 22, 2024
Advertisement
Advertisement
Advertisement