Miami-based fintech startup Milo offers what it claims is the world’s first “crypto loan”. The digital bank will allow crypto-investors to use their digital assets to buy real estate in the United States.
Currently, only customers who are willing to use Bitcoin (BTC) as collateral are eligible for Milo’s 30-year mortgage. Both US and international customers will be able to use the service to purchase real estate in the US. Milo’s website says:
“Instead of selling your crypto for a down payment to qualify for a mortgage, a crypto loan allows you to use your crypto to invest in real estate.”
Milo has already provided several loans in the early access phase and expects the service to be available to the majority of applicants on the waiting list in the coming months.
It is still unclear how much BTC will be needed to secure the loan, or the level of excess collateral needed to balance the digital asset’s volatility. The Cointelegraph asked Milo for more details and will update this story when we receive an answer.
Josip Rupena, CEO and founder of Milo, said the idea came about in response to “countless stories” about people paying BTC to buy property, only to see it rise in value later.
“The current ways in which crypto consumers have access to home credit has left them with an unintended tax liability to sell for an advance payment or worse than the opportunity cost of increasing the value of crypto.”
Another mortgage solution for foreign nationals is already in the form of multi-million dollar loans, Milo said, with applicants from more than 63 countries approaching. Non-US residents are allowed to close their mortgages externally without having to travel to the US or an embassy.
Pro-crypto mayor Francis Suarez introduced Robina at the North American Bitcoin conference on Monday, saying that staking bitcoin is a “groundbreaking achievement” that consolidated US dominance in the bitcoin ecosystem.
“To be a capital city, Miami needs companies like Milo that are willing to innovate and think,” he added.
Milo is not the first company to target cryptocurrencies.
In August 2021, United Wholesale Mortgage began testing cryptocurrencies using Ether (ETH) and BTC as part of a beta program. In October, however, he abandoned his plans due to regulatory uncertainty.
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In January 2021, Milo raised $ 6 million in seed financing from investors including QED Investors, Metaprop and 10X Capital.
Robina has worked for multinational investment banking companies Morgan Stanley and Goldman Sachs.