Bitcoin 2022 hosted a panel at the Enterprise Stage on the use of bitcoin as collateral for mortgages and other debt-based instruments. The panel kicked off with moderator George Mekhail introducing the panelists: Edward Rodriguez, the co-founder and CEO of BPN Capital Group; Adam Reeds, the co-founder and CEO of Ledn; Sam Abbassi, the founder and CEO of Hoseki; and Josip Rupena, the founder and CEO of Milo.
Mekhail started the panel by introducing the topic of proof of reserves: how mortgage lenders verify that you have the bitcoin in order to qualify for the mortgage. “The idea that an exchange can prove to you that you have the assets that you should have … building a layer that can prove this … will unlock Bitcoin’s full potential.”
When asked why customers would not call Wells Fargo instead, Reeds responded, “When it comes to traditional income, they may not qualify … but they’re very wealthy in bitcoin.” This introduces the idea that bitcoin could replace income as the method of verifying a homeowner’s ability to pay back their loan.
Adding onto that concept of pristine collateral, Rupena said, “Bitcoin is the perfect collateral that an individual can have.”
Moving into bitcoin-backed mortgages, Rodriguez explained, “Starting in 2018, mortgages were a heavily regulated industry, we need to make sure we’re complying with all of the regulations … three years later, we were able to get the regulators happy.”
Financial inclusion was a concept echoed heavily throughout the panel.
“Also working on a fund where they purchase large commercial debt from financial institutions, and allowing investors to purchase them … allowing bitcoin owners to enter these industries that have largely only been exploited by the 1%.” -Edward Rodriguez
Many of the current lending companies that accept bitcoin as collateral aren’t necessarily the
