Canadian company Ledn has officially announced the launch of a mortgage service backed by Bitcoin.
Mortgages with Bitcoin: Ledn’s offering
Ledn already offers digital asset loans, but the new mortgage product allows for fiat money loans with BTC as collateral for the purchase of real estate.
This is the first product of its kind to hit the market. It will allow customers to use their BTC to buy property, while also possibly continuing to benefit from the appreciation of both assets.
Customers will also be offered the opportunity to combine BTC with other property collateral to obtain the mortgage loan.
According to the company, this unique collateral structure, which relies on the stability of real estate to protect against Bitcoin‘s volatility, is designed to provide customers with a way to mitigate the impact of BTC price fluctuations during periods of increased volatility.
It will also allow BTC holders to use them to buy a home, without necessarily having to spend them, and without having to find a seller willing to accept them as payment. It will be sufficient to lock them as collateral to obtain a fiat currency loan with which to purchase a property.
Growing waiting list
The service is currently in pilot mode, but is expected to be made available to all customers in the US and Canada in early 2022. Ledn says that the waiting list to take advantage of this new service is growing, so much so that they are aiming to exceed $100 million in BTC-backed mortgages by the end of the first quarter of 2022.
Ledn co-founder and CEO Adam Reeds said:
“Most people that hold extensive wealth in Bitcoin still can’t utilize their assets to qualify for a mortgage at a bank. Our clients want to diversify their portfolio in order to protect their wealth and then utilize that wealth for instances such as purchasing a home, but one should not come at the expense of the other. That is why we are launching this product, in order to provide access to key financial products for those who choose to invest outside the mainstream of legacy banks”.
Ledn provides already financial products around the world, with a mission to unlock the power of digital assets in a way that creates long-term wealth.
Since Q3 2020, Ledn has increased the total volume of assets under management on its platform by over 4,000% to over $1.7 billion.
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