ETH Project ‘Teller’ Concludes World’s First DeFi Mortgage

April 29, 2022, 10:30 AM AEST - 3 weeks ago

USDC.Homes is a new company that partners with mortgage lenders and brokers to facilitate home loans using cryptocurrencies. This week, the company sold its first home to an Austin, Texas, resident who bought a US$680,000 condo through the Ethereum-based lending protocol Teller.

Forget About Fiat – Buy Your Home With Crypto

Teller calls USDC.Home the “first unsecured DeFi mortgage”, with its hybrid program that combines practices from both the traditional finance and decentralised finance worlds. Borrowers can ask for loans and show their credit score to determine eligibility and can use cryptocurrency staking or other yield-generating activities to pay off the balance:

Thanks to a good credit score, the Austin homebuyer was able to get the loan and while he didn’t put up collateral, he did make a downpayment in USDC. He was able to earn interest on the downpayment by putting his assets to work through staking.

According to Teller, all transactions take place on-chain using Ethereum sidechain Polygon, which leverages a set of mechanisms to make transactions faster and cheaper.

Buying Homes With Crypto – From Dreams to Reality

Buying a home using bitcoin or other cryptocurrencies was a mere dream years ago, but it’s now a solid reality thanks to mainstream adoption of digital assets.

A few months ago Crypto News Australia reported that Milo, a US fintech company, had launched the world’s first Bitcoin mortgage offering, enabling customers to buy real estate in the US by leveraging their stack as collateral:

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