Cryptocurrency and Mortgagetech

December 13, 2020
Antonio Flores

 One of the biggest inventions of the past decade, cryptocurrency has redefined how we think of money. Instead of defining value either off of physical assets such as precious metals or commodities, or of the good faith and credit of a government like fiat currency, cryptocurrency’s value depends upon the security of the distribution process through the blockchain: only a certain amount are released, and what is released is subject to radically greater transparency and security than is usual. Although the value of cryptocurrencies has been very volatile, this is to be expected for the beginning stages of what has proven so far to be an enduring technology rather than a passing fad. The value of Bitcoin, the original cryptocurrency, has greatly increased since its inception, and has stabilized somewhat in the past few years, but there have arisen a vast array of other cryptocurrencies as well, some tethered to different businesses, others like Monero with even greater security and anonymity than Bitcoin, and others which provide a variety of services and allow ordinary people to send each other money with unprecedented speed, privacy, and affordability. Here are some businesses in the mortgage tech industry which are dealing in cryptocurrencies. is a Swiss-incorporated blockchain-based mortgage lending platform. Homelend seeks to crowdfund mortgage loans using their own custom Ethereum-based cryptocurrency, HMD. This cryptocurrency provides access to the platform, and can be purchased via other major cryptocurrencies, such as Ethereum or Bitcoin, along with US Dollars. The major advantages of the use of blockchain and the cryptocurrency are that transactions in the cryptocurrency do not require notaries to verify or brokers to mediate, as well as the combination of anonymity and transparency that ordinary cryptocurrencies are known for. The platform is still in beta testing, but you can buy their cryptocurrency, and it is sellable in any online crypto market as well as useable on Homelend’s platform.

SALT Lending is an American online bank which takes cryptocurrency as collateral for loans. The loans are not specified as mortgage loans, but it is perfectly possible to take out loans big enough for a mortgage, you just need a very large amount of cryptocurrency to use as collateral. The advantage of using cryptocurrency for this purpose, rather than physical assets, is its immateriality: it is far easier to transfer cryptocurrency than a house or car. 

To conclude, there are several companies using cryptocurrencies in various roles for mortgage lending.

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