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Citi Flags Crypto-Backed Real Estate Mortgages Amid Falling Market Conditions
The bank points to the rise of crypto-backed mortgages and financing of digital property purchases.
Updated May 11, 2023, 5:38 p.m. Published Jun 29, 2022, 12:13 p.m.
Banking giant Citigroup has made a series of comments on mortgages backed by cryptocurrencies and the rise of digital real estate in the metaverse amid a pullback in the crypto markets.
- "Recently, a new crypto-adjacent mortgage product has gained prominence with a straightforward motivation: allowing crypto investors to utilize their investment gains to secure a loan without incurring the tax event," Citi wrote in a research paper titled "PropTech: Towards a Frictionless Housing Market?" dated this month.
- The note describes how crypto investors can collateralize crypto holdings that at least covers the cost of a property before being issued a loan.
- "If the value of cryptocurrency declines, the borrower may be subject to margin calls and ultimately the cryptocurrency may be liquidated if the collateral value falls below a certain threshold, such as 35% of the property value," Citi added.
- Figure Technologies unveiled some crypto-backed mortgage products in March with requirements for borrowers to put up 100% of collateral.
- Four months before that, crypto lending platform Ledn raised $70 million at a valuation of $540 million with plans to create a bitcoin-backed mortgage product.
- Citi also described how financing similar to mortgages may be developed in the metaverse, with prospective buyers of The Sandbox's LAND being able to obtain a loan via third parties by using already owned LAND as collateral. LAND is a piece of digital real estate on metaverse The Sandbox.
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Bilinmesi gerekenler:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
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Nasdaq, home of Coinbase, Strategy stocks, seeks 23-hour trading amid investor demand
Crypto's 24/7 trading has influenced investor expectations, with Nasdaq acknowledging that many of its clients are already active overnight.
Bilinmesi gerekenler:
- Nasdaq plans to expand stock and exchange-traded product trading to 23 hours a day, five days a week, according to a filing.
- The move follows similar initiatives by the New York Stock Exchange and reflects growing global demand for extended market access.
- Always-on cryptocurrency trading has influenced investor expectations, with Nasdaq acknowledging that many of its clients are already active overnight.
