ByBrix, turn your bitcoin into bricks and mortar. Discover the small revolution that this ecosystem offers in the fields of DeFi and real estate.
ByBrix offers a concrete solution to crypto owners who want to buy real estate. What is it?
This company allows you to use your crypto assets as collateral instead of selling them to buy a house.
Founded in 2022, it is a venture backed by AQRU plc, the UK’s only publicly traded DeFi gas pedal, and Blimp Homes, a decentralized real estate data company.
The team at AQRU plc comes from a range of top crypto, payments and fintech companies, and has one of the longest track records of successful asset management in the crypto space.
Blimp Homes, led by experienced industry leaders, is on a mission to democratize real estate data away from the hands of the centralized entities that currently govern how data should be shared and stored.
ByBrix , real estate and crypto
Long-time investors who have accumulated crypto assets over the years have weathered many storms, including the current market turmoil. Now is probably not the time to sell their crypto assets. However, savvy investors should find ways to put their crypto reserves to work. Some types of home loans allow investors to use the crypto as collateral to buy a home.
Gradually, industry players are building the infrastructure to enable these types of transactions. This is to give crypto holders the opportunity to maximize the potential of their holdings.
ByBrix is one of these players, and for sure, its activity will often mark the DeFi news in the future. Specifically, it is a recently launched joint venture between the crypto app Blimp Homes and the DeFi incubator AQRU. ByBrix will collateralize digital assets and allow their holders to use them in their real estate purchases in the UK, Canada, Australia and the US.
Rather than selling their crypto assets to buy a house, crypto investors can use them as collateral. This way, they can continue to benefit from any future appreciation of their crypto investments. In addition, they will avoid paying the transaction fees associated with the sale, as well as any potential capital gains taxes. This is because rather than converting the crypto into fiat currency, the platform safely preserves it until the borrower repays the loan.
An advantage not to be underestimated:
With this solution, the crypto acts as collateral for the down payment made to the home seller. There are also other loans that cover the rest of the purchase amount (provided by specialized providers via ByBrix). This allows the home loan to be separated from the crypto collateral. Therefore, if the house is foreclosed, the secured cryptocurrency is not affected.
A first step towards new possibilities:
In order for it to be fully captured, the opportunity presented by crypto loans will require a great deal of education in the real estate and digital asset sectors. Indeed, the mechanics of these instruments prove nuanced. All stakeholders – from potential borrowers looking to use their crypto wealth, to intermediaries like brokers, and even regulators – will need time and assistance to embrace this new mindset. In the same way that crypto-currencies have changed our definitions of what money and currency are, crypto lending may redefine the value propositions of the real estate industry.