In a symbolic event for the crypto industry, an investor secured a crypto loan using an Airbnb property as collateral. The borrower has set up a Apartment Cyprus as collateral for a USDC 5,000 loan facilitated by USDC.homes on the Teller protocol. It’s unclear how the loan relates to the Airbnb property itself.
The borrower, in this case, requested a USDC5,000 loan with an interest rate of 25.25% due in one year, providing a link to an Airbnb property as a means of providing identification. It didn’t take long to find a willing lender.
USDC.homes is a platform that allows users to obtain crypto mortgages to buy homes or borrow crypto using their existing property as collateral. It is one of many crypto mortgage platforms occupying a niche that traditional mortgage providers avoid. There is now another loan application to use an Airbnb property as collateral on the platform.
Crypto mortgages are relatively new, but they seem positioned for considerable growth due to several factors. For one, they require fewer identity and credit checks, making them faster to approve than a traditional loan. It is a suitable alternative for people with no credit history due to lack of a steady job or complete loan avoidance.
The loan secured on an Airbnb property is a good demonstration of the relative ease of obtaining crypto loans compared to traditional loans. According data on the Polygon blockchainthe loan was funded less than 24 hours after he applied.
We are likely to see many more instances of loans being facilitated on the blockchain with relative ease compared to the conventional method of acquiring a mortgage.