Teller took out a collateral free DeFi loan on an Austin property
An Austin individual is now a pleased landowner after leveraging their credit rating to secure a loan priced in USDC virtual currency via the Polygon platform.
A homebuyer in Austin, Texas has purchased a house through a provision that allows cryptocurrency owners to obtain regular collateral-free loans depending on an individual’s credit.
The USDC.homes cryptocurrency loans system made its first cryptocurrency credit to an Austin customer who purchased a $680,000 condominium with a $500,000 credit in USD Currency (USDC) virtual currency via the Polygon (MATIC) network.
This new system mixes classic borrowing market practices, such as using a lender’s credit rating to evaluate qualifying, with emerging decentralized finance (DeFi) technologies, such as bitcoin holding, to assist pay it down.
The system’s loans are granted in USD, but lenders can settle in Ether (ETH), Bitcoins (BTC), or USDC. It was created with the Teller borrowing system and is supported by the TrueFi initiative, which makes collateral-free crypto mortgages. USDC.homes can provide 30-year loans up to $5 million at a 5.5 percent annual rate and a 20% closing costs.
Each borrower’s lump sum is lodged, rather than auctioned, and accumulates income throughout time, which is used to assist householders to make payments on their borrowing. As per Teller’s April 27 medium post, the daily requirement to exchange one’s digital currencies for cash to receive a credit risks American lenders to “the costs of taxes, penalties, and a degradation of status.”
True loan issuance becomes more and more widespread in the cryptocurrency business. And to an April 26 story from Housing Wire, the LoanSnap network aims to expand its operations to registered mortgage lenders this year.
According to CEO Karl Jacob, LoanSnap has granted “millions and millions of dollars” in conventional loans by utilizing a machine learning (AI) lending technology.
His core operations have also expanded into the blockchain arena, with the collaboration of DeFi borrower Bacon Technology to link property prices to a non-fungible coin (NFT)
Since last November, Bacon Process has been providing NFT foreclosures with financing prices as high as 3.1 percent, significantly less than that of the 5.55 percentage points on a regular conventional loan, as per Investopedia
