Lunar Mortgage, a crypto mortgage provider, announced on Tuesday that it raised a $3.5 million funding round, led primarily by Cadenza Ventures and CoinFund. The funds will be used to finance its loan product, CryptoMortgage.
Moon Mortgage CryptoMortgages will allow investors to take out loans on their digital assets. The product also takes investors’ digital assets as collateral and offers 100% financing for investment properties.
CryptoMortgage will soon launch for home buyers in Texas, Florida, and Colorado, as well as investment property investors in most states in the United States.
Founded in 2022 by Aaron Nevin and Tristan Marino, Moon Mortgage is the product of the founders’ advocacy for crypto and their frustrations with its apps’ lack of digital asset lending. So the team set out to create a platform that will allow people with crypto assets to make physical investments and use crypto as collateral to secure loans.
Nevin, co-founder and CEO of Moon Mortgage, said CoinDesk that people are incentivized to invest in real estate with crypto. However, until now they lacked the “capacity to” because buying homes in the past meant they had to liquidate their assets, lose money and receive a “massive” tax bill. With CryptoMortgage, the company aims to connect crypto and TradFi to make it easier to mine digital assets.
Although there is still a long way to go for the convergence of TradFi and crypto, Moon Mortgage aims to close this gap now, he added.
“Our $3.5 million investment – an impressive feat given the still bearish outlook for crypto – will go a long way towards making this vision a reality as we look to launch our CryptoMortgage product this year,” said Nevin in a statement.
Moon Mortgage’s crypto assets are stored with Anchorage Digital, a cryptocurrency custodial company that is also the first federally chartered crypto bank in the United States.
“Many investors have been able to make impressive gains investing in crypto – but you still can’t use it to buy a home,” Nevin said in the statement.
Besides Moon Mortgage, a few other crypto-based companies have also had funding rounds recently. MinePlex, a Singapore-based crypto bank, secured a $100 million funding round led by a Bahamas-based digital asset investment firm Limited digital gem. MinePles aims to use the funds to expand its business globally and develop new banking technologies with payment processors like Visa and Mastercard to enable digital asset payments.
The place of cryptocurrency in real estate remains an intriguing questions market. Figure, led by former SoFi CEO Mike Cagney, has bet big on the promise of blockchain and, ultimately, cryptocurrency-backed mortgages. He launched the company’s first crypto-mortgage product earlier this year. Two other companies have announced the product since December, including a Miami-based digital lender Milo and Toronto-based cryptocurrency lending platform ledn.
In March, HousingWire reported on the NFT craze and the kind of disruption blockchain could present to traditional real estate processes.