Homium Raises $10M and Tokenizes Home Equity Loans on Avalanche
Summary
Homium, a real-estate equity mortgage lender and securitization platform, has gone live with its first home equity loans on Avalanche.The offering comes as real-world asset (RWA) tokenization continues to become more popular with the market will grow to as large as $10 trillion in this decade. As part of securing the loan, homeowners commit a portion of their homes price appreciation. For investors, i.e., those funding the loan, they receive a tokenized asset tracking the price appreciation of a pool of shared appreciation home loans issued on Homium.The aim is to help free up trapped home equity and address housing affordability issues in a variety of scenarios, according to the press release. Homium is also offering an investable asset to institutional investors via digital securities backed by homeowner equity.Homium is building a valuable new asset class for institutional investors, providing a new source of uncorrelated, inflation protected return in their core portfolios, said Tommy Mercein, CEO of Homium.The company also raised $10 million in a Series A funding round led by Sorenson Impact Group and Blizzard, Avalanches ecosystem fund.Avalanche allocated $50 million to purchase tokenized assets created on its layer 1 in July last year. The tokenized assets range from equity, credit, real estate and commodities.