Boston-based OpenLTV, which offers fractional investing in loans secured by the U.S. real estate has launched an investment platform, as well as a partnership with Paxos, a company focused on rebuilding the infrastructure of finance through blockchain. The company said that it is building a transparent passive income platform for investors seeking to benefit from exposure to U.S. real estate-backed debt, and will begin accepting the Paxos stable coin.
OpenLTV said that its platform enables investors to earn a passive income collateralized by the U.S. real estate, without actually owning the property. Users will be able to invest using cryptocurrency and earn 8-12% return per year. Further, OpenLTV will issue its securities on the Ethereum blockchain in the form of a security token, enabling transparency and secondary trading with ease, which is an innovation in the blockchain and real estate investment spaces.
“The OpenLTV platform will simultaneously allow us to tap into a global pool of investors and unused crypto-asset liquidity,” says Kirill Bensonoff, CEO of OpenLTV. “We are thrilled to be partnering with the Paxos team to bring a long-standing and secure investment option in the real estate industry to the financial future.”
Through this partnership, Paxos will be integrated into the OpenLTV ecosystem, enabling investments and interest payments in PAX stablecoin, which is equivalent to one US dollar.
In 2018, there were over 200,000 houses “flipped” in the US, and more houses purchased for longer-term investments through a “buy, renovate, and hold” strategy. The OpenLTV platform enables investors anywhere in the world to participate in the lucrative practice of flipping houses and the opportunity to earn market-beating returns. Using OpenLTV, qualified investors can earn passive income by investing in fractional debt secured by real estate in the U.S.