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Bitcoin Foundation director and former child star Brock Pierce, is the first person in the world to use his crypto assets to buy a $1.2 million home in Amsterdam, without actually giving away his Bitcoin.
According to FOX Business, the Swiss-based companay Nexo, a startup that provides instant crypto credit lines, announced in an exclusive interview that Hollywood child star Brock Pierce is the first person in the world to use his crypto assets to buy real estate.
The American actor-turned entrepreneur, who apparently holds more than 95% of his net worth in cryptocurrencies, used a total amount of more than $3 million in Bitcoin as collateral to buy himself a $1.2 million renovated chapel-turned-home in Amsterdam.
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Antoni Trenchev, co-founder and managing partner at NEXO said that Pierce backed the entire loan for the house with Bitcoin.
'This was our first-ever crypto-backed mortgage', he said.
Trenchev added that most crypto enthusiasts, are convinced that the cryptocurrency universe one day will skyrocket, so they never want to sell their assets. However, sometimes life gets in the way and they need fiat cash fast.
'So we take that Bitcoin and other digital currencies as collateral using a third party qualified custodian to store it and give them fiat cash for it. But neither the client nor us have access to the coins', Trenchev said.
'For a loan of $10,000 dollars you will need to deposit $20,000 in Bitcoin. So, we lend you like 50 cents on the dollar.'
Nexo clients can get instant loans of up to $2 million in 45 different fiat currencies within 24 hours.
The Mighty Duck actor told FOX that the new platform, which launched last year, has the capability of being the bridge between the old world of traditional finance and the brand new frontier that blockchain now enables.
'Being able to borrow against one’s crypto assets gives one options, when wanting to purchase a property, and aligns with my philosophy that real estate and tokenization will be a quadrillion dollar market. I was able to hold on to my crypto and settle the transaction in fiat', Pierce said.
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