Bitcoin-Backed Mortgages Head to Canada as Costs Remain Unclear
Edited by Steinar Vigdel Kolnes, Editor, Oslo
Bitcoin-backed mortgages are set to enter Canada, but borrowing costs remain unclear and falling bitcoin prices could put crypto collateral at risk.
Bitcoin-backed mortgages are coming to Canada, according to CoinDesk, though prospective borrowers still lack clarity on the costs involved.
The loans carry a risk that bitcoin pledged as collateral could be liquidated if its price falls. That exposure is a key consideration for borrowers evaluating the mortgage structure.
APX said the property and cryptocurrency pledged against the loans would be treated separately. The distinction does not eliminate the liquidation risk tied to a decline in bitcoin’s value.
Source: CoinDesk
