Citi Flags Crypto-Backed Real Estate Mortgages Amid Falling Market Conditions

The bank points to the rise of crypto-backed mortgages and financing of digital property purchases.

AccessTimeIconJun 29, 2022 at 12:13 p.m. UTC
Updated May 11, 2023 at 5:38 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Banking giant Citigroup has made a series of comments on mortgages backed by cryptocurrencies and the rise of digital real estate in the metaverse amid a pullback in the crypto markets.

  • "Recently, a new crypto-adjacent mortgage product has gained prominence with a straightforward motivation: allowing crypto investors to utilize their investment gains to secure a loan without incurring the tax event," Citi wrote in a research paper titled "PropTech: Towards a Frictionless Housing Market?" dated this month.
  • The note describes how crypto investors can collateralize crypto holdings that at least covers the cost of a property before being issued a loan.
  • "If the value of cryptocurrency declines, the borrower may be subject to margin calls and ultimately the cryptocurrency may be liquidated if the collateral value falls below a certain threshold, such as 35% of the property value," Citi added.
  • Figure Technologies unveiled some crypto-backed mortgage products in March with requirements for borrowers to put up 100% of collateral.
  • Four months before that, crypto lending platform Ledn raised $70 million at a valuation of $540 million with plans to create a bitcoin-backed mortgage product.
  • Citi also described how financing similar to mortgages may be developed in the metaverse, with prospective buyers of The Sandbox's LAND being able to obtain a loan via third parties by using already owned LAND as collateral. LAND is a piece of digital real estate on metaverse The Sandbox.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Oliver Knight

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

Author placeholder image

Will Canny is CoinDesk's finance reporter.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.