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Bitcoin as Collateral? Peoples Reserve Wants to Rewrite the Rules

  • Peoples Reserve aims to offer Bitcoin Powered Mortgages (BPMs), challenging traditional lending.
  • They employ a dual-collateralization structure using Bitcoin alongside real estate as collateral.
  • This allows for lower rates for borrowers and reduces lender risk.
  • Interest rates are tied to the performance of the Bitcoin collateral, creating a more dynamic pricing model.
  • Peoples Reserve ensures borrower and lender protection through multi-signature wallets.
  • The platform empowers individuals to unlock their Bitcoin's purchasing power without giving up ownership.
  • By cross-collateralizing property and Bitcoin, Peoples Reserve makes homes more affordable for Bitcoin savers.
  • Liquidation of Bitcoin collateral only occurs in case of loan default, not based on price volatility.
  • Peoples Reserve plans to expand beyond mortgages to offer Bitcoin-denominated bonds and financial tools.
  • The company targets both retail and institutional lenders for Bitcoin-backed collateral.

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