Milo surpasses $100 million in cryptocurrency-supported home loans, finalizes unprecedented $12 million transaction.

The company, which possesses mortgage provider licenses in ten U.S. states with plans for expansion, boasts an impeccable record of zero margin calls throughout its mortgage portfolio.

Real estate (Coindesk archives)

What to know:

• Milo enables cryptocurrency holders to use their bitcoin or ether as collateral for loans up to $25 million without the necessity of liquidating their digital assets.
• Milo requires 100% of the property’s value to be provided in crypto collateral, which can be maintained with qualified custodians such as Coinbase or BitGo, or through a self-custodial method for those preferring complete asset control.
• The loans, which commence at an interest rate of 8.25%, can also be utilized for purposes such as purchasing land, financing home renovations, and investing in businesses.

Milo, a cryptocurrency lending firm in the U.S. that focuses on crypto-secured mortgages, has facilitated over $100 million in home loans, including its largest individual transaction to date, a $12 million crypto mortgage.

The company, which holds mortgage provider licenses in ten U.S. states and intends to add more, has maintained a flawless record of zero margin calls within its mortgage portfolio, even amid ongoing fluctuations in bitcoin and other cryptocurrencies, Milo stated in a press release on Wednesday.

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The firm allows cryptocurrency holders to utilize their bitcoin or ether as collateral for loans up to $25 million without needing to sell their digital assets, thereby eliminating cash down payments and avoiding significant taxable events.

Reflecting on the situation, Milo founder Josip Rupena mentioned that individuals who may have been encouraged by friends to invest in Bitcoin a decade ago and who had the determination to retain their holdings through various volatility cycles could discover that a substantial portion of their net worth is now tied up in crypto.

These individuals typically range in age from 30 to 55, are employed, and may have a retirement account, yet often lack adequate income to purchase their desired home, Rupena noted.

“Our average transaction involves a home valued at one and a half million dollars,” Rupena stated in an interview. “A client might earn $100k annually while their crypto net worth could be between three and seven million. If Bitcoin were replaced with Apple stock, a product like ours might not be necessary. However, because consumers possess an asset that is not broadly recognized, paired with the volatility concerns, solutions like ours are essential for assisting them in purchasing a home.”

Milo insists on 100% of the property value in crypto collateral, which can be stored with qualified custodians like Coinbase or BitGo, or through a self-custodial option for full asset control. The loans, beginning at 8.25%, are also applicable for acquiring land, funding home renovations, and business investments.

In contrast to standard crypto loans that may trigger margin calls with a 25% drop, Milo has structured its product to be more conservative, accommodating drawdowns of up to 65%.

Even during turbulent periods such as the recent months, if a drawdown were to meet the specified threshold, Milo would adjust the loan value, ensuring the customer can maintain their mortgage, Rupena explained.

“We would essentially reduce the risk by adjusting the 100% down to 65% or 70%, similar to a traditional mortgage, allowing them to continue making payments. We designed it so that as long as a person can keep making payments, they will be able to retain their home, regardless of Bitcoin’s performance,” he added.

To date, Milo has completed several transactions in the property market of Miami and additional deals in various regions of Florida, along with Texas, California, Colorado, Connecticut, and Arizona. The $12 million deal referenced in the press release occurred in Tennessee, Rupena noted.

This product has received endorsement from bitcoin pioneer and CEO of Blockstream, Adam Back.

“Milo’s offering is revolutionary in bitcoin lending and opens up real-world applications for numerous bitcoin holders,” Back stated in a comment. “As bitcoin continues to rise in value, buyers can accumulate equity in real estate without needing to liquidate their long-term investments in bitcoin.”