Crypto lending platform Moon Mortgage has raised a $3.5 million seed round. The funds will be used to finance Moon’s mortgage lending product, CryptoMortgage.
CryptoMortage takes investors' digital assets as collateral, and then provides 100% financing for investment properties. Investors can also use Moon Mortgage to take out a loan 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,” co-founder and CEO Aaron Nevin told CoinDesk. “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.”
CryptoMortgage will be launching soon for home buyers in Texas, Florida and Colorado, and will eventually be open to investors in most states across the U.S. for investment properties, according to the company.
Moon Mortgage’s crypto assets are stored with crypto custodial firm Anchorage Digital, which is a U.S. federally chartered 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,” noted Nevin. “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.”
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.