Cryptocurrency lending platform Moon Mortgage has launched two products in an effort to help the digital wealth of crypto investors materialise: A new mortgage offering and a new crypto loan margin account ‘Trade & Borrow’.
Trade & Borrow enables investors to borrow against the value of their crypto assets, while still maintaining some control of it. Investors using the Moon Mortgage service can still trade their digital assets after they have taken out a cash loan, ensuring they don’t have to lose their potential upside.
Moon Mortgage and its affiliates are working with a fully chartered digital asset bank in the US to enable the company to leverage a custody solution that provides borrowers peace of mind. All digital assets are stored by Moon Mortgage with the bank on a like-for-like basis. Unlike other competitor products, Moon Mortgage will not lend out the assets it takes as collateral.
Investors can take out a loan using Trade & Borrow on one, three, or six-month terms. Borrowers have the option to renew their loans and no prepayment penalty is included. There are also no origination fees, and investors can easily exit their position when they feel the time is right. The Moon Mortgage team has also focused on the need to keep the process as simple as possible, with investors able to receive their loans in as few as three steps.
Supporting investors after ‘a very tough year’
Aaron Nevin, co-founder and CEO of Moon Mortgage, explained why crypto investors require such offerings at this moment in time. Nevin said: “Against the backdrop of a very tough year for crypto investors, there is an obvious need to provide more options to help create material value — to ensure that investors can have as many options as possible, just as traditional retail investors have.
“Trade & Borrow is how we are doing that. For too long, investors have had to ‘put up and shut up’ with how they can use crypto to create material gains – having to convert crypto into fiat in order to leverage that for major living expenses, such as buying a vehicle. But we say you should be able to have your cake and eat it too. Trade & Borrow is our dream of being able to really use your crypto, without having to lose your edge, and with security at the heart of the product.”
Moon Mortgage has also released its core mortgage product to market, which means crypto investors will be able to use their assets to secure funding for purchases of real estate. The lending platform designed the crypto mortgage product to work like traditional mortgages, with the difference being that digital assets serve as additional collateral.
Investors are able to receive financing for real estate purchases in as few as six steps, with the expected average close time of as little as 14 days. Investors will need a minimum of a $1million loan amount in order to apply.
The crypto mortgage product has launched for house buyers in Florida, Texas, and Colorado, and will be open to investors in most states across the US for investment properties.
Tristan Marino, co-founder and COO of Moon Mortgage, said: “The use case for crypto has to go beyond investment potential. It has to be about how an investor can use it for real-world gains. While the full convergence of TradFi and crypto is still a long way off, we are working to bridge the gap now.
“Our crypto mortgage product is how we are doing that; allowing investors to be able to truly materialize their digital wealth into real estate investments, as simply as possible and with compliance and safety. Along with our Trade & Borrow product, we are aiming to transform the crypto space from simple investment speculation to a true financial system.”