Glen Oaks Escrow, one of the largest independent escrow companies in California, has facilitated its first refinancing through a Bitcoin-backed loan.
In a press release issued today, the company said this marks the first time a refinancing has been completed with a buyer using Bitcoin as collateral.
Glen Oaks began accepting Bitcoin payments in 2018, and sees the news as proof the cryptocurrency’s value proposition is becoming clearer to debtors and creditors.
Glen Oaks Chief Operating Officer Joe Curtis commented, “Seeing someone other than the home buyer use Bitcoin in a real estate transaction tells us that this technology has the potential to continue becoming more prominent, even if it is still considered new to our industry.”
It is unclear whether Glen Oaks or their client retained custody of the Bitcoin used to back this loan, though it is possible the custodian and client share access to the funds using a multi-signature wallet.
Prior to today’s transaction, Glen Oaks Escrow had only facilitated transactions in which the buyer used Bitcoin as the form of payment.
“Seeing a lender use cryptocurrency for a refinance shows us that this payment method is continuing to grow in how it’s used and who it’s used by,” Glen Oaks COO Joe Curtis said.
Stepping back, the news is part of a broader impact Bitcoin is having on the real estate industry, with numerous luxury properties around the U.S. now available for purchase in the cryptocurrency.