WEST HARTFORD, CT / ACCESSWIRE / February 23, 2022 / New Silver, a leading technology company that provides fast financing to real estate investors, today announced the launch of its new decentralized finance (DeFi) securitized mortgage fund ("Fund"). The Fund will allow accredited investors in the U.S., as well across the world, to gain exposure to a pool of short-term mortgages, collateralized by residential, U.S.-based real estate.
In an industry first, accredited investors can generate income by investing in a revolving pool of short-duration mortgages that have been securitized on the blockchain using liquidity from DeFi, without having to go through the complexities of transacting on the blockchain. The Fund makes investing, redeeming and collecting quarterly income easy for investors that do not want to deal with transacting on the blockchain.
New Silver's securitized asset pool is built on Tinlake, a DeFi protocol developed by Centrifuge to allow access to leverage and significant liquidity from MakerDAO, Aave and other DeFi protocols. With this novel securitization approach and utilizing the technological advantages of the blockchain, the Fund has a 14% hurdle rate and aims to return a 17-22% yield annually.
This novel approach has the mechanics of a traditional MBS securitization. Each loan is held in a bankruptcy remote 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 servicer collects payments from borrowers and distributes them to the SPV.
"DeFi is improving the way financial transactions are done, including asset-based securitizations," said John Coury, Head of Capital Markets at New Silver. "With this first of a kind approach, accredited investors can participate in this new economy and its benefits, without having any blockchain knowledge and with no cryptocurrency exposure risk".
Investors interested in New Silver's decentralized finance securitized mortgage fund will have access to multiple 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 making a more seamless operation for investors.
New Silver is the first "real-world asset" lender to partner with a DeFi protocol. To date, the company has originated more than $90 million of loans with more than $25 million of 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 provides fast financing to real estate investors who focus on fix and flip residential projects. New Silver's proprietary software accelerates, automates and streamlines loan originations while using data to reduce default risk. Additionally, New Silver's FlipScout tool uses intelligence in order to help find real estate investment projects with the highest ROI. For more information please visit https://www.newsilver.com
New Silver Contact
John Coury
[email protected]
PR Contact
Red Rooster PR
Evan Sneider
[email protected]
SOURCE: New Silver Lending LLC