Avalanche Homium Raises $10M and Tokenizes Home Equity Loans

The first home equity loans that Homium, a real estate equity mortgage lender and securitization platform, has made available on Avalanche have been made available to the public.  

The offering takes place at a time when real-world asset (RWA) tokenization is gaining more and more popularity. Some analysts project that the market may expand to as much as $10 trillion in the next ten years. Tokenization is a process that involves issuing a digital version of a real-world asset, which in this case is a home equity loan. This digital representation is then distributed on a blockchain.  

For the time being, the Homium loans are only available in Colorado, but there are plans to expand them to other states. The homeowners are required to contribute a share of the appreciation in the value of their home in order to secure the loan.  

Investors, who are the ones who are funding the loan, are given a tokenized asset that tracks the price appreciation of a pool of shared appreciation house loans that are issued on Homium.  

According to the press release, the objective is to assist in the release of stifled home equity and to address concerns pertaining to the affordability of housing in a range of different scenarios. Through the use of digital securities that are backed by homeowner equity, Homium is also providing institutional investors with an asset that can be invested in.

Tommy Mercein, the Chief Executive Officer of Homium, stated that the company is "building a valuable new asset class for institutional investors." This new asset class will provide institutional investors with a new source of uncorrelated, inflation-protected return in their core portfolios.  

Additionally, the company was successful in raising ten million dollars through a Series A capital round that was led by Sorenson Impact Group and Blizzard, which is Avalanche's ecosystem fund.  

Avalanche purchased tokenized assets that were developed on its layer 1 in July of the previous year with a budget of fifty million dollars. Tokenized assets include a wide variety of assets, including equities, credit, real estate, and commodities.  

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