Moon Mortgage, a cryptocurrency lending platform, launched two new products: a new mortgage for crypto investors and a crypto loan margin account, Trade & Borrow.
Trade & Borrow allows investors to borrow against the value of their crypto while still being able to trade their assets after they’ve taken out a loan.
Loans can be taken out on one-, three-, and six-month terms, with the option to renew. There is no prepayment penalty and no origination fees.
“Against the backdrop of a very tough year for crypto investors, there is an obvious need to provide more options to help create material value — to ensure that investors can have as many options as possible, just as traditional retail investors have,” said Aaron Nevin, Co-founder and CEO of Moon Mortgage.
“Trade & Borrow is how we are doing that. For too long, investors have had to ‘put up and shut up’ with how they can use crypto to create material gains — having to convert crypto into fiat in order to leverage that for major living expenses, such as buying a vehicle. But we say you should be able to have your cake and eat it too. Trade & Borrow is our dream of being able to really use your crypto, without having to lose your edge, and with security at the heart of the product.”
Moon Mortgage works with a fully chartered digital asset bank in the U.S. to ensure that investors’ cryptocurrency is secure. All digital assets are stored by Moon Mortgage with the bank on a like-for-like basis, and the company says it will never lend out the assets it takes as collateral.
The company also released its core mortgage product to the market, so investors can use their assets to buy property. It says crypto mortgages work like traditional mortgages, with the only difference being digital assets used as collateral.
Expected average close time is around 14 days. Investors need a minimum of a $1 million loan amount to apply. This is currently available to buyers in Florida, Texas, and Colorado.
“Along with our Trade & Borrow product, we are aiming to transform the crypto space from a simple investment speculation to a true financial system,” said Tristan Marino, co-founder and COO of Moon Mortgage.
Cryptocurrency investors took major hits in the past year, first with the collapse of FTX and, most recently, major bank closings. NY-based Signature Bank’s collapse was at least partially the result of risky cryptocurrency bets.
Crypto publication CoinTelegraph noted that markets have been trading “within an unusually tight 5% range since March 17 as conflicting forces continue to pressure the sector.”