The digital mortgage platform Beeline Holdings Inc., (NASDAQ: BLNE) has announced plans to launch of a stablecoin-backed home equity access product that allows homeowners to convert a portion of their home equity into immediate cash without incurring debt or monthly payments.
According to the Providence, Rhode Island-based company, it has partnered with RealCo, which is co-owned by Beeline’s principal shareholder and CEO Nick Liuzza. In this partnership, RealCo will issue stablecoins to access capital to purchase equity from homeowners seeking liquidity while Beeline Title will provide title and escrow services.
The stablecoins will be backed by ownership through a fractional deed on the property. RealCo will acquire a minority ownership in homes (up to 49%) as a nominee for the funders who will receive the stablecoins. Homeowners selling equity can opt to receive RealCo-issued stablecoins or US dollars.
Participating homeowners will receive cash at closing and will not be required to repay the funds until the property is sold. Upon sale, RealCo, as nominee for the token holders, will receive its pro rata percentage of the net proceeds. All ownership privileges remain intact, provided property taxes are kept current.
Beta transactions starting this month and an official rollout is scheduled for late July. RealCo will initially launch in approximately ten thousand US ZIP codes and will only focus on equity purchases at homes with a value of $1 million or more.
“Provided there’s equity in the home, RealCo will mint coins at closing, which may then be converted into US dollars,” said Liuzza. “This model enables us to provide homeowners with liquidity quickly, with an unprecedented model. The stablecoin mechanism becomes the catalyst for funding, and the stablecoin is secured by property recorded in 1:1 in the blockchain and in the public record.”
