“Mighty Ducks” actor Brock Pierce used bitcoin to buy $ 1.2 million house in Amsterdam

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On the heels bitcoins recent wave of mystery to five-month high after several-month lows, the biggest crypto lender announced he was officially backing his first mortgage using cryptocurrency so ‘Mighty Ducks’ actor Brock Pierce could buy a $ 1.2 million home.

Switzerland-based Nexo, a startup dubbed an instant crypto line of credit, told FOX Business in an exclusive interview that the Hollywood child star is the first person in the world to use their crypto assets to buy. immovable using their platform.

Last November, the actor-turned-entrepreneur, who owns more than 95% of his net worth in cryptocurrency, used more than three million bitcoins as collateral to buy 1.2 million refurbished chapel turned home in Amsterdam.

“He backed the entire house loan with bitcoin,” NEXO co-founder and managing partner Antoni Trenchev told FOX Business. “This was our very first cryptocurrency-backed mortgage.

Trenchev says Pierce, like most crypto enthusiasts, is convinced that the crypto world is going to take off, so they will never want to sell their assets, but sometimes life gets in the way and they need fiat money fast.

“So we take this bitcoin and other digital currencies as collateral using a qualified third-party custodian to store it and give them fiat money for it. But neither the customer nor we have access to the parts, ”adds Trenchev. Customers can get instant loans of up to $ 2 million in 45 different fiat currencies within 24 hours.

And, just like regular credit cards, Nexo charges customers interest rates ranging from 8% to 16%. Additionally, due to the uncertainty of how crypto prices have fluctuated over the past few years, Trenchev says customers should put double the amount as a buffer.

“For a loan of $ 10,000, you will need to deposit $ 20,000 in bitcoin. So we lend you 50 cents on the dollar. “

In a statement to FOX Business, Pierce said the new platform, launched last year, has the ability to be the bridge between “the old world of traditional finance and the whole new frontier that blockchain enables. from now on”.

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“Being able to borrow against your crypto assets gives options, when you want to buy a property, and aligns with my philosophy that real estate and tokenization will be a billion dollar market. I was able to hold onto my crypto and settle the transaction in fiat, ”Pierce said.

Last year, prior to launch, Nexo raised more than $ 52 million and currently has more than 170,000 customers worldwide.

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