Bitcoin-Backed Mortgages Launched for Crypto Millionaires
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Bitcoin-Backed Mortgages Launched for Crypto Millionaires

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XBTO says its new product is designed to help investors who suffer from a lack of liquidity — meaning they're crypto rich but cash poor.

Bitcoin-Backed Mortgages Launched for Crypto Millionaires

Bitcoin-backed mortgages are being launched for crypto millionaires.

XBTO says its new product is designed to help investors who suffer from a lack of liquidity — meaning they're crypto rich but cash poor.

The lender will allow its borrowers to retain ownership of their BTC but use it as collateral when buying real estate.

A downpayment of just 10% will be required on a property, which can be made in dollars or Bitcoin, meaning the rest can be financed using crypto.

Crucially, XBTO says that the interest rates on offer for 15 and 30-year deals are comparable to the traditional mortgages seen in the fiat world.

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Not everyone will be able to benefit from XBTO's crypto mortgages at first — applicants must be based in Florida, and the houses being purchased need to be worth over $1m, too.

XBTO's CEO Philippe Bekhazi says digital assets have created massive wealth for investors — but many are unwilling to sell:

"Linking digital assets to homeownership is a smart way to hold onto digital asset holdings, but smartly leverages it for immediate utility, a home to live in."

The company has entered into a partnership with Columbus Capital, a licensed mortgage originator, broker, lender and servicer, as it brings the product to market. XBTO says this will ensure borrowers have the same protections as those on traditional, fiat-focused deals.

XBTO's head of markets, Joe Haggenmiller, added:

"This is just the start of use cases for digital assets. In the future, we will see a massive increase in the use of digital assets leveraged creatively for practical uses."
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