Escrow Company Issues First-Ever Bitcoin-Backed Real Estate Loan

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Glen Oaks began accepting bitcoins in 2018 and sees the loan as proof that cryptocurrency’s value proposition is becoming clearer to debtors and lenders.

Glen Oaks Escrow, one of the largest independent escrow companies in California, facilitated its first refinancing with a Bitcoin-backed loan.

In a press release released today, the company said this is the first time a refinancing has been completed with a buyer using bitcoin as collateral.

Glen Oaks began accepting Bitcoin payments in 2018 and sees the news as proof that cryptocurrency’s value proposition is becoming clearer to debtors and creditors.

Glen Oaks Chief Operating Officer Joe Curtis commented“The fact that someone other than a home buyer is using bitcoin in a real estate transaction tells us that the technology can continue to become more visible, even if it is still considered new to our industry.”

It is unclear if Glen Oaks or their client kept the bitcoins used to secure this loan, although it is possible that the custodian and client share access to funds using multisignature wallet

Prior to today’s transaction, Glen Oaks Escrow only performed transactions in which the buyer used bitcoin as a form of payment.

“Observing how a lender uses cryptocurrency to refinance shows us that this payment method continues to grow depending on how it is used and by whom it is used,” said the chief operating officer of Glen Oaks. Joe Curtis said

Backtracking, the news is part of Bitcoin’s broader impact on the real estate industry, as numerous high-end real estate properties can now be bought in the US with cryptocurrency.

Photo Breno Assis on the Unsplash

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.

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