Innovation in the cryptoactive market continues to advance with Homium, a home equity line of credit (HELOC) tokenization platform, standing out after securing a significant investment of US$10 million in its most recent Series A financing round. The investment was led by Sorenson Impact Group and Blizzard, reinforcing confidence in the disruptive potential of Homium, which operates on the Avalanche platform.
Homium proposes a viable alternative for owners who seek financial resources based on the value accumulated in their properties, but who prefer not to increase their monthly debt. The company allows owners to pledge a portion of the future appreciation of their properties as collateral to obtain credit, which can be used for purposes such as home maintenance, debt consolidation or succession planning.
Tommy Mercein, CEO of Homium, highlights the relevance of the model to the market: “We are building a valuable new asset class for institutional investors, offering a source of uncorrelated and inflation-protected returns.”
Homium issues tokenized home equity loans on Avalanche 🔺
The blockchain industry has seen a resurgence in focus on asset tokenization. Through shared appreciation home equity loans, @homium introduces a way for homeowners to borrow against their home equity without increasing… pic.twitter.com/X8execbAMv
— Avalanche 🔺 (@avax) April 16, 2024
The tokens generated by Homium differ from conventional cryptocurrencies. They are, in effect, debt securities that adhere to Rule 144A of the SEC, designated for institutional investors, and secured by second mortgages. Homium's system ensures that each property involved is rigorously evaluated, providing an extra layer of security and transparency for investors.
Homium's patented technology allows real-time monitoring of loan values, ensuring complete transparency and immediate securitization of the note from its inception, which provides a clear view of the current value and appreciation prospects of the properties securing the loans .
With investments of around US$50 million allocated to tokenization protocols that focus on real estate and collectibles, Avalanche reinforces its commitment to the expansion and diversification of the use of blockchain in the real estate sector. This movement reflects the growing realization of the potential of tokenization as a vital tool for the evolution of digital finance, as indicated by recent analyzes from renowned financial institutions.
