Moon Mortgage, a cryptocurrency lending platform, has raised a $3.5 million seed round. The money will be used to finance Moon's CryptoMortgage mortgage financing product.
CryptoMortage offers 100% financing for investment properties after accepting investors' digital assets as security. Moon Mortgage also allows investors to borrow money against the value of their digital assets.
"People are already incentivized to use their crypto to invest in real estate; the problem is that until now they have never had the ability to," according to co-founder and CEO Aaron Nevin. "Historically, to buy a home they would have had to liquidate their assets, lose their upside and get hit with a massive tax bill. The aim is to bridge the two worlds of crypto and TradFi to make it easy for them to leverage their digital assets."
According to the business, CryptoMortgage will soon be available to house purchasers in Texas, Florida, and Colorado. Eventually, investors in most U.S. states will be able to use it to finance investment properties.
The crypto assets of Moon Mortgage are kept with cryptocurrency custodian company Anchorage Digital, a U.S. federally regulated crypto bank.
"Many investors have been able to make impressive gains by investing in crypto – but you still can’t use it to buy a house. The convergence of TradFi and crypto is still a long way off, so we want to bridge that gap now and allow investors to not just be able to use their crypto to invest in real world assets, but to also be able to continue benefiting from their crypto investments in the long term," said Nevin.
By fLEXI tEAM