Avalanche-Based Homium Raises $10M to Tokenise Home Equity Loans, Eyes US-Wide Expansion

Real estate venture Homium has raised millions to create a new tokenised product leveraging the Avalanche blockchain.
Homium allows customers to draw equity from their properties and trade them like any other asset, giving both investors and homeowners something to look forward to.
Avalanche was selected as the network for this purpose due to its fast transaction speeds and low costs.

Tokenisation has taken the wheel over the past couple weeks, with Chainlink and BlackRock making significant strides in this area. Turning real-world assets into valuable digital assets that can be traded online is seen as a potential catalyst for widespread adoption. And popular DeFi ecosystem Avalanche is vying to be a part of the revolution, with the blockchain partnering with startup Homium to help solve the housing affordability crisis.

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We don’t need another exemplar of the housing affordability crisis – everyone and their dog knows that owning a property is expensive. Homium wants to address the issue in a unique way (admittedly one that only really helps existing homeowners). Their latest product, created in conjunction with the Avalanche network, lets homeowners access equity from their property in the form of a tokenised security. So, for the first time, equity is now a liquid, appreciative asset – making it much more valuable to investors.

Homium issues tokenized home equity loans on Avalanche 🔺
The blockchain industry has seen a resurgence in focus on asset tokenization. Through shared appreciation home equity loans, @homium introduces a way for homeowners to borrow against their home equity without increasing… pic.twitter.com/X8execbAMv
— Avalanche 🔺 (@avax) April 16, 2024

The CEO of Homium touched upon the product’s potential:

Homium is building a valuable new asset class for institutional investors, providing a new source of uncorrelated, inflation-protected return in their core portfolios…For the first time, institutions can invest side-by-side with homeowners.

Tommy Mercein, CEO of Homium

So far, the loans are only available to Colorado residents, but the offering will no doubt expand across the US if the launch is successful.

Despite Avalanche receiving a swell of compliments from industry players thanks to its lightning-fast settlement times and low fees – making it a great platform for tokenisation – the news did little to halt AVAX’s freefall. Avalanche’s native coin is down over 26% in the past week, mirroring the broader downturn across altcoins.