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- XRP Ledger has welcomed the first stablecoin backed by mortgages.
- The innovative stablecoin dubbed HOME is set to redefine the landscape of mortgage financing and offer homeowners better and more accessible options.
Ripple’s XRP Ledger (XRPL) has welcomed an innovative stablecoin backed by mortgages. Developed by the RWA protocol, this groundbreaking innovation will revolutionize the mortgage industry by unlocking new products for homeowners and other market participants. Using the utility token $HOME offered on the XRPL, the community can benefit from the stability and growth potential of mortgages which offer a steady stream of reliable income.
With the mortgage market totaling at least $13 trillion, the RWA protocol has identified an opportunity to integrate blockchain technology to bring new innovations into what has been the domain of banks, governments, and large institutions.
The stablecoin offers flexibility, accessibility, and accelerated processes for homeowners seeking mortgage financing. Thus far, the RWA protocol has facilitated the funding of over 46 home loans which has helped showcase the effectiveness of the new innovation.
Key benefits of HOME include:
- Transparency on the loans backing the coin – Based on a ledger, all overcollateralized loans backing the coin may be viewed on the blockchain.
- Current return is 2 to 5 percent- The loans backing HOME generate a 2 to 5 percent return from borrowers repaying the loans without incentives.
- Loans are backed by homes worth more than the amount- Every loan is overcollateralized with the average loan in the pool backing $HOME is being overcollateralized by 30 percent or more.
- Assets and the creation of loans are decentralized- Assets backing $HOME are distributed around the United States. The platform is open to any loan officer to originate loans, as well as financial institutions.
These benefits will unlock new possibilities for homeowners and other market participants in the mortgage industry. Furthermore, it will drive the adoption of XRP Ledger which has continued to demonstrate its versatility. By launching on the XRP Ledger, the project leverages the ultra-fast, low-cost, and carbon-neutral network.
Why the Ripple Ledger (XRPL)
The new launch is also a demonstration that developers and users are not shying away from Ripple despite its 2-year-long legal battle with the SEC. Experts anticipate that an end is near with most expressing confidence that Ripple will emerge as the winner.
Earlier this week, rumors were swirling that SEC chain Gary Gensler was about to resign due to an internal investigation but these rumors have not been substantiated. Many have accused the chair of being unfair and his resignation would be welcomed by those in support of Ripple.
