Bacon Protocol launches decentralized mortgage platform

Published at: Sept. 28, 2021

Decentralized mortgage lender Bacon Protocol officially launched on Tuesday, allowing cryptocurrency investors to participate in the housing market through a new stablecoin that’s backed by USD Coin (USDC) and home loans. 

In addition to launching its protocol, Bacon announced Tuesday that it is holding a public sale of bHome token, which is described as a Stable+ Coin that’s backed “dollar for dollar” by USDC, liens and loans on properties in the United States. Early participants in the sale will be eligible to receive additional rewards via the BACON governance token.

Bacon Protocol works by giving homeowners the ability to exchange a lien on their property for a nonfungible token, or NFT, that represents a percentage of the property they purchased. The NFT gives buyers collateral to access other crypto markets, including decentralized finance (DeFi). The entire process will initially be facilitated by Virgin-backed LoanSnap, a financial services company that helps American homebuyers save on interest rates and other associated costs.

The U.S. mortgage market is a complex ecosystem comprising banks, corporations, governments and borrowers. In 2019, the value of all U.S. residential mortgages was estimated to be worth $11 trillion.

Despite record-low interest rates, the market attracts big investors keen to collect interest payments on mortgages and liens. It’s estimated that banks, companies and governments purchase over $2 trillion worth of mortgages each year. Meanwhile, the Federal Reserve has over $2.5 trillion worth of mortgage-backed securities on its balance sheet as of Thursday.

Related: New Blockchain Lab aims to modernize the mortgage industry

While some mortgage providers have expressed interest in accepting cryptocurrency payments, the industry has largely fallen outside of DeFi’s sphere of influence so far. That could soon change as new innovations continue to bridge the gap between these two worlds.

The backers of Bacon Protocol, including Alex Pall of The Chainsmokers venture fund, believe blockchain technology can bring mortgage investments to mainstream audiences. Currently, major banks earn billions of dollars in annual interest on their mortgage holdings.

Tags
United States
Business
Investments
Wells Fargo
Related Posts
Bitkraft VC launches $75M investment fund for blockchain gaming
Esports, gaming and interactive media investment platform Bitkraft VC has established a $75-million token fund for investing in blockchain gaming and digital entertainment. The fund uses a “stage-agnostic” strategy, meaning that it will put money in companies and startups at any business development stage. Apart from equity investment, the token fund will also invest in cryptocurrencies and nonfungible tokens (NFT). In order to provide regulated investment opportunities, Bitkraft received an investment advisor registration from the United States Securities and Exchange Commission in June 2021. The new token fund is led by Piers Kicks, a founding partner in the investment arm …
Blockchain / Oct. 8, 2021
GME drops 14% as GameStop announces plans to sell up to 3.5M shares
GameStop Corporation, an American gaming and consumer electronics retailer, has announced its plans to sell up to 3.5 million GME shares following the stock’s massive and controversial rally. The firm announced Monday that it has filed a prospectus supplement with the United States Securities and Exchange Commission, under which it may offer and sell up to 3.5 million shares of GME stock via an at-the-market, or ATM, equity offering program. GameStop said that its total global sales increased nearly 11% for the nine-week period ending April 3, 2021. GameStop noted that its common stock will be offered through American multinational …
United States / April 5, 2021
Guggenheim CIO expects Bitcoin to drop to $20,000
A senior executive at financial services firm Guggenheim Partners — which is planning to seek investment exposure to Bitcoin (BTC) — has argued that BTC is poised to drop to $20,000. Scott Minerd, Guggenheim’s chief investment officer, believes that Bitcoin will not hit another all-time high in 2021, according to a Jan. 21 episode of CNBC's Closing Bell. After hitting $42,000 price level on Jan. 8, Bitcoin is unlikely to climb any higher until 2022, Minerd said: “I think for the time being, we probably put in the top for bitcoin for the next year or so. And we're likely …
Bitcoin / Jan. 21, 2021
Gemini acquires BITRIA to push crypto into the wealth management industry
Crypto exchange Gemini announced Thursday that it had agreed to purchase Bitria, a San Fransisco-based start-up that provides traditional portfolio management tools for use in crypto investments. The goal of Bitria is to provide a platform for traditional asset managers and financial advisors to use in helping their clients invest in cryptocurrencies. Gemini said that it seeks to integrate Bitria’s Separately Managed Accounts and its Digital Turnkey Asset Management platform into its own exchange capabilities. The integration is intended to give advisors access to more than 70 different cryptocurrencies through Gemini’s exchange as well as giving them access to their …
Adoption / Jan. 13, 2022
Sen. Warren asks Fidelity to address the risks to put Bitcoin in 401(k)s
The United States government is growing increasingly concerned about Bitcoin (BTC) in retirement savings, with two senators flagging some issues in Fidelity Investments’ plans to include Bitcoin (BTC) in 401(k) accounts. Senators Elizabeth Warren of Massachusetts and Tina Smith of Minnesota expressed concerns over Fidelity’s decision to add BTC to its 401(k) investment plan in a letter to Fidelity CEO Abigail Johnson. Dated May 4, the letter suggests that Fidelity’s latest Bitcoin plan has a potential conflict of interest, noting that Fidelity has been deeply involved in crypto since it began experimenting with BTC and Ether (ETH) mining operations and …
Bitcoin / May 5, 2022