Homium Raises $10M in Series A Funding Round for Innovative Home Equity Tokenization Protocol
Summary:
Homium, a protocol that tokenizes home equity lines of credit (HELOC), has raised $10 million in a Series A funding round. Homium's model allows homeowners to leverage their property's future appreciation without increasing their monthly debt. The HELOC tokens are backed by second mortgages and comply with US SEC’s Rule 144A. Currently, the home tokenization loans are available only in Colorado.
Homium, an innovative protocol that tokenizes home equity line of credit (HELOC), has successfully accumulated $10 million in a Series A financing round. Esteemed firms Sorenson Impact Group and Blizzard helmed this round. According to a recent proclamation from Avalanche, Homium employs shared home equity loans to facilitate homeowners in utilizing their home equity for borrowing, without causing a surge in their monthly liabilities. Homium allows homeowners to use a fraction of their property's anticipated appreciation as collateral for loan equity, meant for various purposes like home improvement, debt consolidation, or leaving an inheritance. Investors, in return, acquire a tokenized asset that mirrors the appreciation value of a collective pool of homes under the protocol.
CEO Tommy Mercein, articulated that Homium is in the process of creating a novel asset class that would prove invaluable for institutional investors. It would pave the way for a new, uncorrelated and inflation-proofed return source in their main portfolios. Presently, the tokenization loans associated with homes are available only in Colorado.
The tokenized assets have a backup of second mortgage loans granted to single-family homes occupied by the owners. For the investors of HELOC tokens, a protective clause ensures their attachment to the title just like any ordinary mortgage. Homium guarantees that every property involved undergoes an appraisal by a reliable third-party, hybrid valuation service, coupled with loan originators nationwide.
Though HELOC tokens are built on the platform of distributed ledger technology, they are not considered cryptocurrencies. These tokens are classified as debt securities, compliant with Rule 144A of the United States Securities and Exchange Commission (SEC). This rule pertains to the private placement for institutional investors.
The developers of Homium are using patented technology to provide investors with real-time data concerning every loan within each pool. This includes information about the loan's origination value and its current market-oriented estimated value. Homium's uniform underwriting standard facilitates immediate securitization at inception.
Avalanche has committed $50 million towards investments in on-chain tokenization protocols since July of the previous year. The focus is primarily on protocols specializing in real estate and digital collectibles. Financial services behemoth Citi has recently touted the tokenization market as the next prodigious application in the realm of crypto.
Published At
4/16/2024 7:01:49 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.