Figure sets out plans to launch crypto-backed mortgages

Layer 1s • March 23, 2022, 7:25AM EDT
The Block

Loans platform Figure has opened its waiting list for crypto-backed mortgages in the US, in a move that would let borrowers put up bitcoin (BTC) or ethereum (ETH) as collateral.

Borrowers will be able to take out mortgages worth up to $20 million for a 30-year loan, according to a LinkedIn post by the company's co-founder, Mike Cagney.

The loan instrument, set to launch in April, will allow payments with the crypto collateral. Meanwhile, Figure says it won't rehypothecate the assets. 

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Figure follows several other companies into the crypto-backed mortgage market, in a move that speaks to the growing interest in bringing digital assets to the housing market. 

In December, Ledn has also announced a new bitcoin-backed mortgage product, which will allow users to borrow to buy a home with their bitcoin holdings as collateral. When it announced the product, Ledn said it was targeting over $100 million in bitcoin-backed mortgage originations by the end of the first quarter of 2022.

Earlier this year, crypto credit company Milo also announced a crypto-backed mortgage product.

About Author

Lucy is an editor focusing on NFTs, gaming and the metaverse. Prior to joining she worked as a freelancer, with bylines in Wired, Newsweek and The Wall Street Journal, among other publications. Follow her on Twitter: @LHM1.