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Moon Mortgage lands $3.5M investment to provide crypto-collateralized mortgages

source-logo  cryptoslate.com 12 October 2022 12:08, UTC

Investors and prospective home buyers will soon be able to take out crypto-backed mortgages to buy real estate in the U.S. Moon Mortgage, a cryptocurrency lending platform, has raised a $3.5 million seed round to bring two key products to market, including an innovative mortgage lending product aimed at crypto holders.

In a press release shared with CryptoSlate, the company said that its new products will enable investors to materialize their crypto holdings in real estate. The new product will take investors’ digital assets as collateral and provide them with 100% of the financing both for owner-occupied and investment properties.

“Many investors have been able to make impressive gains by investing in crypto — but you still can’t use it to buy a house,” said Aaron Nevin, the co-founder and CEO of Moon Mortgage. “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.”

Nevin said that the $3.5 million investment was an impressive feat for the company given that there seems no end in sight to the ongoing bear market. The seed round, led by CoinFund and Cadenza Ventures, will enable it to launch its proprietary CryptoMortgage product by the end of the year.

When launched, the product will be available to house buyers in Texas, Florida, and Colorado and open to investors in most U.S. states for investment properties. The product will also enable non-U.S. residents to invest in real estate in the country.

All crypto assets deposited with Moon Mortgage will be stored with Anchorage Digitial, a federally-chartered crypto bank in the U.S., where they’ll be protected by the industry’s highest standards, Nevin noted.

Moon Mortgage’s backers believe the company is set to bring significant improvement in the home buying and lending experience. Austin Barack, a partner at CoinFund, said that the company was building the missing “critical infrastructure” to connect crypto to the real estate asset class.