WEST HARTFORD, CT /ACCESSWIRE/February 23, 2022/ new money, a leading technology company that provides rapid funding to real estate investors, today announced the launch of its new Decentralized Finance (DeFi) Securitized Mortgage Fund (“Fund”). The Fund will enable accredited investors in the United States, as well as across the world, to gain exposure to a pool of short-term mortgage loans, secured by US-based residential real estate.
In an industry first, accredited investors can generate income by investing in a revolving pool of short-term mortgages that have been securitized on the blockchain using DeFi liquidity, without having to go through the complexities of transactions. on the blockchain. The Fund facilitates investment, redemption and quarterly income collection for investors who do not wish to transact on the blockchain.
New Silver’s pool of securitized assets is built on Tinlake, a DeFi protocol developed by Centrifuge to enable access to significant leverage and liquidity from MakerDAO, Aave, and other DeFi protocols. With this new approach to securitization and using the technological advantages of blockchain, the Fund has a hurdle rate of 14% and aims to generate a return of 17-22% per year.
This new approach has the mechanics of a traditional MBS securitization. Each loan is held in a remote bankruptcy SPV and then minted on the blockchain as a non-fungible token (NFT), creating a digital representation of the asset. The assets are then locked into the DeFi pool, providing New Silver liquidity and generating income for investors. A third-party manager collects payments from borrowers and distributes them to the SPV.
“DeFi improves the way financial transactions are done, including asset-based securitizations,” said John Coury, head of capital markets at New Silver. “With this unprecedented approach, accredited investors can participate in this new economy and its benefits, without having any knowledge of the blockchain and without the risk of exposure to cryptocurrencies”.
Investors interested in New Silver’s Decentralized Finance Securitized Mortgage Fund will have access to several DeFi protocols that have no correlation to central bank rate adjustments and a significant amount of potential liquidity. The fund will also handle all operational needs related to cryptocurrencies, exchanges, custody, transactions and tax reporting, which will make the operation more transparent for investors.
New Silver is the first “real-world asset” lender to partner with a DeFi protocol. To date, the company has issued over $90 million in loans with over $25 million in loans securitized on the blockchain, creating the largest known DeFi pool or securitized real-world assets.
For more information, please visit: https://newsilver.com/defi/.
About New Silver Lending LLC:
New Silver is a technology company that offers rapid financing to real estate investors who focus on fixed and reversible residential projects. New Silver’s proprietary software accelerates, automates and streamlines loan originations while using data to reduce the risk of default. Additionally, New Silver’s FlipScout tool uses intelligence to help find real estate investment projects with the highest ROI. For more information, please visit https://www.newsilver.com
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THE SOURCE: New Money Lending LLC
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