Very interesting news
Of course, the company is betting on the famous crypto paradigm known as "ngu"
One of the key details on this will be the LTV ratio. Say you have Bitcoin worth $1m they might just let you borrow a percentage, say 10%. This will protect Milo from falls in prices. They may not be taking that big a gamble here!
would you put your Bitcoin as collateral to buy a house?
I wouldn't use Bitcoin as Collateral to buy a home for two reasons
- mainly because the price is too volatile. Maybe a rental property or as an investor but for a home I feel you need a bit more stability. You need to be able to sleep at night 😀
- The second reason is practically speaking it will get complicated. Tax liabilities are unclear, having a fintech (startup) financial institution with custody of your bitcoins is even scarier than having it on an exchange IMO