Mortgages backed with Bitcoin (and a few other cryptoassets) as collateral are becoming more readily available (at least in the U.S.) as new startups race to offer novel solutions for homebuyers. 

According to a report by Barron’s, FinTech startup Milo began offering 30-year mortgages backed with cryptoassets in March. Milo CEO Josip Rupena said the company has been working with more than 700 potential borrowers on pre-approvals and has made $5-$10 million in loans. 

The report claims prospective borrowers can use Bitcoin, Ethereum, or stablecoins as collateral for the loan. Rupena said the startup is currently accepting USD Coin, Gemini Dollar, and Terra stabelcoins, which are pegged to the value of $1. 

Milo also offers credit extensions for up to 100% of the purchase price if the buyer has enough cryptoassets. Current rates for its 30-year mortgages range from 3.95% to 5.95%, which can be repaid in digital assets or fiat currency. 

The report cites similar efforts by companies to offer crypto-backed mortgages, including startups Figure Lending and Ledn, which both report having a waiting list for loans. 

Daniel Wallace, general manager of Figure Lending, explained his company’s process to Barron’s, 

If you custody $1 million of Bitcoin or ether, we’ll give you $1 million in a loan. That means you’re not financing a loan out of pocket—there’s no down payment.

The report also mentions that crypto loans may be more streamlined than those offered through banks. Milo says it is able to close a loan in two to three weeks and does not require a FICO credit check. The company relies upon a verification of identity and the source of funds to comply with “know your customer” regulations, but is otherwise minimal in its documentation requirements. 


The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

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