Benzinga - Real World Asset (RWA) protocol announced the mint of HOME, the first mortgage-backed stablecoin on the XRP Ledger (XRPL) blockchain.
Built on the RWA protocol, HOME will provide institutions and individuals with access to the stability and cash flows offered by mortgages in the U.S., the company stated in a press release.
The loans made to homeowners are collateralized and backed by a promise to repay the borrowed amount or the lender can sell the house to cover the loan.
This provides a steady stream of reliable income for holders of HOME, the company stated.
The new stablecoin also offered more flexibility and speed for homeowners, with some mortgages funding as quickly as 48 hours, the company added.
Since its inception, more than 46 home loans have been funded with the protocol.
The company further said all overcollateralized loans backing the coin can be viewed on the blockchain, including information about the home's location, value, and lien amount.
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HOME also offers a return of 2%-5% from borrowers repaying the loans without incentives and every loan backing HOME is overcollateralized, meaning the value of the home is higher than the lien and loan against the home.
The assets backing HOME are distributed around the U.S., and the platform is open to any loan officer to originate loans, as well as financial institutions.
The collection of payments can be done through anyone licensed to be a servicer or directly through the blockchain.
Karl Jacob, CEO and co-founder of LoanSnap and HOME, expressed optimism about the potential of the RWA protocol.
He said, "Our hope is that RWA protocol will give consumers and homeowners a simplified, faster, and much-improved experience. We give consumers access to the same financial products banks, governments and institutions use to preserve and grow wealth. We help homeowners by giving them faster, more flexible and uniquely beneficial loans."
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