A new Weiss Rating report has warned about the risks of having mortgages backed by cryptocurrency, especially in the world’s current economic situation.
The Florida-based research firm analyst Jon Markman, in the report, identified the poor performance of crypto and stocks this year, plus the rising interest rates, alongside the policy changes of the Federal Reserve and the housing bubble as reasons investors have to exercise caution with crypto mortgages.
“The product seems to be like a win-win, assuming real estate and crypto prices keep rising […] except there are signs both bets are unlikely to be winners in the near term. Bitcoin is off by 40% since it reached $66,000 in November 2021.”
The report specifically cited Milo, the digital bank offering 30-year mortgages backed by Bitcoin, Ethereum, and stablecoins. The bank does not mandate borrowers to make any down payments, and the interest rate ranges from 3.95% to 5.95%.
Borrowers can choose to pledge their crypto asse
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