This project is trying to perfect the stablecoin by backing it with mortgages

Podcasts • October 31, 2022, 5:00AM EDT

Episode 105 of Season 4 of The Scoop was recorded at SALT NY 2022 with The Block's Frank Chaparro and HomeCoin Co-Founder Karl Jacob.

Listen below, and subscribe to The Scoop on Apple, Spotify, Google Podcasts, Stitcher or wherever you listen to podcasts. Email feedback and revision requests can be sent to [email protected].

A project called HomeCoin is tapping into the trillion-dollar real estate industry with a mortgage-backed stablecoin called HOME.

In this episode of The Scoop, HomeCoin Founder Karl Jacob unpacks the mechanics behind HomeCoin’s mortgage-backed stablecoin and shares why he believes the best way to move the real estate industry on-chain is incrementally over time.

According to Jacob, HOME is over-collateralized by mortgages, and yield is paid to holders of HOME from payments made on those mortgages:

”Unlike other stablecoins, where the return is fueled by marketing dollars and a whole bunch of other things and things going to the moon, these are actually real payments from real people on houses that exist in the real world.”

While Jacob sees room for HomeCoin to expand to other types of loans, such as car loans or loans against commercial equipment, he doesn’t think tokenizing actual real estate is an effective strategy:

“The reality is we've got a $13 trillion industry that isn't on-chain, and how can we move to a world where part of it is on-chain and slowly eat that world, versus trying to swallow it whole — which is basically what those guys are trying to do.”

During this episode, Chaparro and Jacob also discuss:

How HomeCoin utilizes real-world decentralization
Why all the loans backing HomeCoin are over-collateralized
How HomeCoin users are able to choose different risk profiles

This episode is brought to you by our sponsor Tron, Ledn

About Tron
TRON is dedicated to accelerating the decentralization of the internet via blockchain technology and decentralized applications (dApps). Founded in September 2017 by H.E. Justin Sun, the TRON network has continued to deliver impressive achievements since MainNet launch in May 2018. July 2018 also marked the ecosystem integration of BitTorrent, a pioneer in decentralized web3 services boasting over 100 million monthly active users. The TRON network completed full decentralization in December 2021 and is now a community-governed DAO. | TRONDAO | Twitter | Discord |

About Ledn
Ledn was founded on the unshakeable conviction that digital assets have the power to democratize access to the global economy. We help you to experience the real life benefits of your Bitcoin without having to sell it. Start a savings account, take out a loan, or double your Bitcoin. For more information visit Ledn.io

About Authors

Davis Quinton is the Director of Podcasts at The Block and runs our flagship podcast called The Scoop, hosted by Frank Chaparro. Since joining The Block as an 'intern' in early 2022, he has worked closely with leaders across departments to translate The Block's written content into engaging multimedia formats. He holds a degree in Social Research & Public Policy from New York University in Abu Dhabi and is based in Sydney, Australia.

Frank Chaparro is the Editor At Large at The Block. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. He runs his own podcast The Scoop and writes a biweekly eponymous newsletter. He leads special projects, including The Block's flagship podcast, The Scoop. Prior to The Block, he held roles at Business Insider, NPR, and Nasdaq. For inquiries or tips, email [email protected].