. It's a loan that uses bitcoin as collateral in the same way a homebuyer seeking a traditional mortgage might offer investment accounts, savings, or other property.
From there, Milo acts much like a traditional lender, earning money on interest and closing costs. If a homeowner goes into foreclosure, Milo sells the property to recoup the amount owed by the borrower. If a homeowner wants to sell their real-estate asset, they must pay Milo the full loan amount in US dollars.While Milo says it's the first lender using bitcoin as collateral for a mortgage, the concept of leveraging against crypto is not new.
But it's not for everyone. Sykes said a crypto mortgage was better-suited for an investor or someone who doesn't have many ways to spend newly amassed crypto wealth.