In a symbolic occurrence for the crypto industry, an investor has obtained a crypto loan using an Airbnb property as collateral. The borrower put up a Cyprus apartment as collateral for a loan of 5,000 USDC facilitated by USDC.homes on the Teller protocol. It’s unclear how the loan is tied to the Airbnb property itself.
The borrower, in this case, requested a 5,000 USDC loan with an interest rate of 25.25% due in one year, providing a link to an Airbnb property as a way to provide identification. It didn’t take long to find a willing lender.
USDC.homes is a platform that lets users get crypto-backed mortgages to purchase homes or borrow crypto using their existing property as collateral. It’s one of several crypto mortgage platforms filling a niche that traditional mortgage providers shy away from. There is now another loan request to use an Airbnb property as collateral on the platform.
Crypto mortgages are fairly new but they seem positioned for vast growth due to several factors. For one, they require fewer identification and credit checks, making it faster to approve than a traditional loan. It’s a suitable alternative for people without a credit history due to the lack of a steady job or avoidance of loans altogether.
The loan secured against an Airbnb property is an apt demonstration of how relatively easy it is to obtain crypto loans compared to traditional loans. According to data on the Polygon blockchain, the loan was funded less than 24 hours after its request.
We’ll likely see many more cases of loans facilitated on the blockchain with relative ease compared to the conventional method of acquiring a mortgage.
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