Homium, a real-estate equity mortgage lender and securitization platform, has commenced its inaugural home equity loans on Avalanche, marking a significant step in the realm of real-world asset (RWA) tokenization.
The move coincides with the escalating trend of RWA tokenization, anticipated to burgeon into a $10 trillion market by the end of the decade. Tokenization, the process of digitizing real-world assets on a blockchain, is exemplified here through the issuance of digital representations of home equity loans.
Homium’s initial loans are currently operational in Colorado, with a strategic roadmap for expansion across other states. Homeowners, in securing these loans, pledge a portion of their home’s appreciated value. For investors, funding these loans translates to acquiring tokenized assets that track the appreciation of a shared pool of home loans on Homium’s platform.
The overarching goal is to unlock dormant home equity, addressing diverse housing affordability challenges. Homium also presents institutional investors with a novel investment avenue through digital securities backed by homeowner equity.
CEO Tommy Mercein expressed, “Homium is forging a new asset class for institutional investors, offering an uncorrelated, inflation-protected return within their core portfolios.”
In a significant financial stride, Homium secured $10 million in a Series A funding round, spearheaded by Sorenson Impact Group and Blizzard, Avalanche’s ecosystem fund.
Avalanche, in a move to bolster tokenized asset acquisition, allocated $50 million to purchase assets generated on its layer 1 platform in July last year. These tokenized assets encompass a spectrum of categories including equity, credit, real estate, and commodities.
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By Proptechbuzz
By Ravi Kumar
