Homium, Inc., a home equity mortgage lender and securitization platform, has launched its tokenized home equity loans on Avalanche.
Homium’s shared appreciation home equity loans “provide homeowners with a novel way to borrow against their home equity without increasing their monthly debt burden.”
Homium’s launch of home equity loans on Avalanche “reflects the continued strong growth of the asset tokenization space and on-chain finance (OnFi) within the Avalanche ecosystem.”
Over the past year and a half, the blockchain industry “has seen a resurgence in focus on asset tokenization.”
Avalanche has stood out as the ideal chain for Homium’s unique needs, “offering sub-second transaction finality, low transaction fees, security, and impressive consistency.”
Homium’s blockchain-native format and transparent terms “make its home equity offering unique as a product for both homeowners and investors.”
Using Homium, homeowners may commit “a portion of their home’s price appreciation instead of paying interest or monthly payments, unlocking equity for home improvements, debt consolidation, or inheritance.”
On the investor side, Homium introduces “a new investable asset to institutional investors through its partnership with Securitize.”
Investors receive a tokenized asset tracking the price appreciation of “a pool of shared appreciation home loans issued in real-time on the Homium platform.”
Shared equity investments allow institutional investors “to effectively partner with families and local governments to bolster homeownership and middle-class wealth creation while reducing housing inequity and displacement.”
By leveraging blockchain and transparent terms, Homium “introduces a new financial product to free up historically trapped home equity and address housing affordability issues.”
Morgan Krupetsky, Senior Director of BD Institutions and Capital Markets at Ava Labs said:
“Avalanche is the ideal platform to support the launch of Homium’s home equity loans. The collaboration with Homium speaks to real-world use cases for asset tokenization and the associated potential for on-chain finance.”
Tommy Mercein, CEO of Homium said:
“Homium is building a valuable new asset class for institutional investors, providing a new source of uncorrelated, inflation-protected return in their core portfolios. For the first time, institutions can invest side-by-side with homeowners, doing well and while doing good.”
To further develop the platform and scale its lending business, Homium raised $10 million in a Series A funding round “led by the Sorenson Impact Group and Blizzard, the Avalanche Ecosystem Fund.”
Homium’s platform simplifies and automates lending “through reliable data integration, intelligent valuation, and auditable origination protocols in an open business ecosystem for participating mortgage originators.”
The first loans are now available in Colorado.