Homium Launches Home Equity Loans on Avalanche, Raises $10 Million Series A

Homium, a real-estate equity mortgage lender and securitization platform, has officially launched its first tokenized home equity loans using the Avalanche blockchain. The development aligns with a trend of real-world asset (RWA) tokenization, which some believe could grow into a $10 trillion market this decade, according to a report by 21.co. Tokenization converts the ownership of a physical asset into a digital token on a blockchain, in this case, representing home equity loans.

Currently operational in Colorado, Homium plans to expand these offerings across various states. The process involves homeowners committing a portion of their home’s future price appreciation in exchange for upfront loan funding. Investors, in turn, receive digital securities that represent a share in the price appreciation of the pooled home equity loans. This innovative approach aims to unlock trapped home equity and mitigate housing affordability challenges, offering institutional investors a new type of investable asset.

Recently, Homium secured $10 million in a Series A funding round led by Sorenson Impact Group and Blizzard, a fund within the Avalanche ecosystem. This funding supports Homium's expansion and the development of its platform. Additionally, Avalanche has dedicated $50 million to acquire various tokenized assets, including those offered by Homium, indicating robust backing for blockchain-enabled financial innovations in the real estate sector.