Homium, a real-estate equity mortgage lender and securitization platform, has gone live with its first home equity loans on Avalanche.
The offering comes as real-world asset (RWA) tokenization continues to become more popular with some predicting the market will grow to as large as $10 trillion in this decade. Tokenization is a process whereby a digital representation of a real world asset – a home equity loan in this instance – is issued on a blockchain.
The Homium loans are currently live in Colorado, with plans to expand to other states. As part of securing the loan, homeowners commit a portion of their home’s price appreciation. For investors, i.e., those funding the loan, they receive a tokenized asset tracking the price appreciation of a pool of shared appreciation home loans issued on Homium.
The aim is to help free up trapped home equity and address housing affordability issues in a variety of scenarios, according to the press release. Homium is also offering an investable asset to institutional investors via digital securities backed by homeowner equity.
“Homium is building a valuable new asset class for institutional investors, providing a new source of uncorrelated, inflation protected return in their core portfolios,” said Tommy Mercein, CEO of Homium.
The company also raised $10 million in a Series A funding round led by Sorenson Impact Group and Blizzard, Avalanche’s ecosystem fund.
Avalanche allocated $50 million to purchase tokenized assets created on its layer 1 in July last year. The tokenized assets range from equity, credit, real estate and commodities.
