$2M Loan for Philadelphia Property Backed by Bitcoin

Nov 24, 2024, 04:43 PM

New Market Capital, under the leadership of CEO Andrew Hones, has introduced a groundbreaking financial product that combines real estate with Bitcoin as collateral. The initiative was highlighted on CNBC where Hones discussed issuing a $2 million loan backed by both a 63-unit property in Philadelphia and Bitcoin. This hybrid approach aims to reduce risk for lenders by diversifying collateral. The concept has garnered attention in the financial sector, with asset manager Newmarket Capital explaining how Bitcoin-backed loans can help mitigate risk. Additionally, Cantor Fitzgerald is exploring a similar program, planning to lend dollars to clients using Bitcoin as collateral, potentially with support from Tether. The fund combines $100 million in real estate with $20 million in Bitcoin, aiming to raise approximately $25 million.